Why Sensex, Nifty 50 are nosediving this week — explained with five reasons

livemint.com:

Stock market today: Key benchmark indices extended its slide for third straight session during morning deals on Thursday. BSE Sensex today opened lower at 66,608 and went on to hit intraday low of 66,219 levels, logging near 0.87 per cent dip during Thursday deals.

However, if we look at this week's performance, Sensex has fallen from 67,838 to 66,219 levels in this truncated week, losing over 1,600 points in last three sessions. Like Sensex, other key benchmarket indices Nifty 50 and Bank Nifty have also witnessed selling pressure in this week.

Nifty has lost over 450 points in last three sessions whereas Bank Nifty has lost around 1,200 points in this time. According to stock market experts, FIIs' selling, US dollar gaining strength, US Fed's hawkish rate pause, rising crude oil prices, etc.

have together contributed profit booking in Indian stock market as majority of the Indian indices were either at record high or near to its life-time high. So, profit booking triggered as the equity market hasd a participatory rally for last few sessions and there was limited upside possibility for the Indian indices.

Speaking on the reasons that led to slide in the Indian stock market, especially Sensex, Nifty 50 and Bank Nifty, Prashanth Tapse, Senior Vice President — Research at Mehta Equities said, "Due to rise in crude oil prices in international market in recent sessions, market was expecting inflation pressure on the US Fed leading to rise in speculation of a hawkish US Fed stance, which turned true in its meeting on Wednesday. Hence, expecting rise in the US dollar, FIIs started fishing out money from assets like equities, gold, etc." Prashanth Tapse said that Indian stock market indices were already at record and and it