The quarterly results of HDFC Bank and Infosys last week fell short of market expectations, hurting investor confidence further. The two stocks alone contributed over 500 points in Sensex fall. These stocks accounted for 17.56 per cent of Nifty50 weight as of March 31.
China GDP growth soft, Covid cases rise
China GDP numbers did not go down well with Asian markets, which fell up to 2 per cent in Monday’s trade. China’s GDP growth came in at 4.8 per cent year-on-year and that the risk of a sharp slowdown over coming months has risen due to curbs across Shanghai and the Ukraine war.
Technical charts weak
Nifty50 had last week formed an Evening Doji Star-like candle, which signalled more pain ahead. The level of 17,450 was expected to act as an immediate support level but the index breached that level easily.
Negative cues from Wall Street
Last Thursday, Wall Street stocks finished lower while bond yields and the dollar rose as investors worried about the potential for aggressive US policy tightening as other central banks around the world moved to reduce support, Reuters reported.
Intensifying Russia-Ukraine war
There was no signs that Russia-Ukraine war may ease anytime soon. Braced for an all-out Russian assault in the east, Ukraine vowed to “fight absolutely to the end” in strategically vital Mariupol, PTI reported.
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