OMG Sensex down by 1000 Points

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Extending its falling streak for the sixth straight session, the 30-share index plunged by 1,274.35 points.

At the end of the first-hour Sensex stood at 33,820 with a loss of 937 points and Nifty stood at 10,383 with a loss of 283 points.Prominent scrips with U.S. link like Tata Motors, Axis Bank, Yes Bank and Idea cellular have taken a heavy beating. There are a bunch of reasons why Sensex is falling today. The resolution of the MPC will be announced tomorrow, 7 February 2018. Most indices on the BSE have posted a decline in the range of 1.5-1.75%. At present, the Sensex is hovering over 33,000, having plummeted over 440 points intraday and a total of 2400 over a period of three days.

According to the BSE data, investors lost almost Rs 5 lakh crore right after the opening bell.

There are a number of factors - domestic and global - that are behind the index's recent (and seemingly continuing) downward turn.

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The slump in Wall Street overnight comes as India's record-setting share rally came under threat over the past few sessions following the government's announcement of a 10% long-term capital gains tax in equities, which starts in April.

In addition to the global volatility, Indian markets will have to contend with the interest rate decision of the nation's Monetary Policy Committee on Wednesday. US wage data on Friday pointed to quickening inflation which may lead to higher rates by the US Federal Reserve. United States stocks tumbled yesterday, 5 February 2018 as interest rates headed higher amid concerns of returning inflation. Potentially higher bond yields also dampened sentiments in USA markets. Japan's Nikkei saw one its biggest single-day drop since 1990.

Brent crude futures were at $66.91 per barrel at 0530 GMT, down 71 cents, or 1.1%, from the previous close. The Dow Jones Industrial Average, the benchmark United States index, fell off a cliff on Monday, posting its biggest intraday point-decline ever in the history of American capital markets since 2011.

Both these indices underperformed the Sensex.