Share Market Crash: The morning of October 28 turned out to be a very bad one for Indian stock market investors. As soon as the market opened, the major indices were seen dipping into the red mark. With the gap-down opening, there was such selling pressure in the market that the Sensex broke over 700 points in no time. At 9.20 am, the Sensex was trading down 712.74 points or 0.97 percent at 72,885.93. At the same time, the Nifty also fell by 186.90 points or 0.82 percent to settle at 22,562.85.
There was an all-round sell-off in the market with around 1,540 shares falling in early trade. However, even in this environment, around 1,100 stocks saw gains, while 145 stocks remained unchanged. Major indices were down 0.9 percent in early trade.
The attack in Saudi Arabia caused crude oil to boil
Rising crude oil prices have played the biggest role in bringing down the market. A refinery in Saudi Arabia, the world’s largest oil exporter, has been attacked. After this incident, it is feared that the supply of oil will be stopped all over the world. Apart from this, the concern of rising inflation has also increased again. Due to which crude oil prices have increased by 1.6 percent. Crude oil has now touched the level of $115.7 per barrel, which has affected the Indian market sentiment.
Awaiting the US Federal Reserve’s decision
Investors are also eyeing the US Federal Reserve (FOMC) decision later this evening. The market expects the Federal Reserve to leave interest rates unchanged, but keep them steady. But the real concern is about the statement coming from the Fed. Rising crude oil prices are adding to inflationary pressures. In such a situation, what stance the Federal Reserve takes on future monetary policy will be very important for markets around the world. Due to this uncertainty, investors are currently avoiding taking risks.
Big crash in IT shares
If we look sector-wise, IT shares have taken the biggest hit today. The IT index saw a massive decline of up to 3 percent. Indian IT companies derive a major portion of their earnings from the US. If we consider the state of the American market, the IT stocks were down more than 2.3 percent. Infosys and HCL Tech were the top losers in the sector. Infosys shares fell 4.6 percent while HCL Tech fell 3.2 percent.
