The benchmark Sensex at the Bombay Stock Exchange fell sharply by 487 points or 1.3 per cent on Wednesday in line with the global markets that have been falling over fears of escalation of trade war between US and China. While the Sensex closed at 37,789.13 on Wednesday, the broader Nifty at the National Stock Exchange fell 138 points or 1.2 per cent to close at 11,359.45.
On Wednesday, Sensex fell for the sixth straight session taking the aggregate fall over six days to 1,278 or 3.3 per cent.
Why are the markets falling?
While the concerns last week hovered around US decision to withdraw waivers on imports from Iran that led to a rise in crude oil prices and fall in equity markets, a growing concern over escalation of US-China trade war has spooked the market worldwide. On Wednesday, the Nikkei in Japan fell 1.5 per cent and Hang Send in Hong Kong slipped 1.2 per cent. The Shanghai Composite in Chine too lost 1.1 per cent. The fall in Asian market followed a sharp decline in the US markets as the Dow Jones Composite fell 1.65 per cent on Tuesday and the nasdaq fell 1.96 per cent.
In addition to the trade war fears, the Indian markets are also concerned over the outcome of the general elections, the results of which will be announced on May 23.