Three Reasons Why Markets Ended in the Red Today

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Three Reasons Why Markets Ended in the Red Today
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- It was an uneventful day for the markets today. They opened lower, edged to the green before entering the red zone, and never really recovered from there. Nifty closed down 0.26% and the BSE Sensex was down 0.31% ending their three-day rally. The main reasons why the markets fell today are:

  1. Weakness in financials: The second wave of COVID-19 cases and the subsequent lockdowns and curfews are causing weakness in banks and financial stocks. Nifty Bank fell 1.02% today and Bajaj Finance Ltd (NS: BJFN ) was the top loser on Nifty, closing down 3.01%. A Fitch report said that banks are facing a two-pronged attack from lower business and higher chances of bad loans.
  2. Lockdown fears: This weekend will let the state governments and the Centre take stock of the pandemic. Apart from the strict lockdown in Maharashtra, curfews have been imposed in Delhi, Bengaluru, and six other cities in Karnataka, four cities in UP and in Rajasthan. Morgan Stanley (NYSE: MS ) has said that the impact of the second wave should be moderate unless there are widespread lockdowns.
  3. Weak global cues: Asia closed lower today with Nikkei 225 , KOSPI 50 and Shanghai Composite down 0.2%, 0.36% and 0.92% respectively. Europe has also opened weaker with FTSE 100 down 0.12% while DAX is flat and CAC 40 is trading up 0.25%. US futures are mixed with Dow Jones 30 Futures up 0.17%, S&P 500 Futures is flat and Nasdaq 100 Futures is up 0.26%.

The long-awaited spike in inflation rates begins, as price data for March trickle in. Europe's industrial output in March slipped alarmingly. March inflation data out of China confirmed the start of a widely-expected increase in prices, measured in annual terms.

Producer price inflation rose 4.4% on the year, the fastest increase since July 2018 and well ahead of expectations, while consumer price inflation rebounded to 0.4% on the year from -0.2% in February.

U.S. stocks are set to build on Thursday’s record closes at the opening, with quiet bond markets largely unruffled by the gradual reopening of the economy.

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  • Rakesh Prasad @Rakesh Prasad
    The only reason and reason of all corona
    Like 1
  • saravana perumal @saravana perumal
    wat should we expect nifty range o upcoming week
    Like 1
    • KV Academy @KV Academy
      Any Strong reasons.
      Like 0
    • KV Academy @KV Academy
      Any Strong reasons.
      Like 0
    • Faizal Hashmi @Faizal Hashmi
      USDINR
      Like 0

      • Comment Guidelines

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