Key Reasons Behind Major Intraday Fall —
BSE Sensex recorded an intra-day fall of more than 1,600 points, making it the biggest crash in about seven years and the third biggest-ever for the BSE benchmark index. Key reasons -
- Chinese stocks led a sell-off in Asian markets as fears about the deepening effects of a slowdown in China's economy rattled investors.
- Brent and US crude oil futures hit their fresh 6-1/2-year lows as investors continue to worry about weak demand as China's economy slows amid a global supply surplus.
- Overseas investors have pulled out nearly Rs 2,000 crore from the Indian stock markets since the beginning of August, amid concerns over Chinese economy coupled with sharp erosion in the value of rupee. The net outflow by FPIs in equities stood at Rs 1,943 crore during August 3- 21, while they invested a net sum of Rs 79 crore in the debt market during the period, which works out to a net outflow of Rs 1,864 crore.