Sensex drops 1,170 points due to global cues and valuation concerns (Roundup).

Mumbai, November 22nd : .

Indias equity indices S&P BSE Sensex & NSE Nifty50 were pushed into deep red by negative global cuesMondays slide was the fourth session in succession.

Investors are being cautious due to concerns over the US Federal Reserve raising interest rates earlier than anticipated and the possibility of high inflation.Oil prices also reached a low point several weeks ago, suggesting that Japan may be releasing its oil reserves.

Domestically, the biggest droppers are realty and oil and gas.The 30-scrip Sensex plunged sharply, falling to 58.465 points.This was down 1,170.12 point or 1.96 percent.The wider 50-scrip Nifty ended the day at 17,416 point, down 1.96 percent or 348.25.The intraday low was 17,280 points.Paytms subdued listing, and continued weak trading is a setback for the Indian market.

The domestic market was growing on the strength of the primary market.Vinod Nair Head of Research, Geojit Financial Services, stated that it will affect the inflows of money from Indias retail sector, which was a major player throughout the year "FIIs also sell because they fear overvaluation of India compared with its peer countries.

The withdrawal of three farm laws could lead to a decrease in FIIss flow, which will likely cause a halt to government reformist agendas before next years state elections.Nair said that India was able to trade at a premium with EMs due to this factor.

Deepak Jasani (Head of Retail Research, HDFC Securities) stated that "Valuations worries have resurfaced within FPIs as new-age IPOs are under severe selling pressure." Fears of the government reversing its farm law reforms, as well as negative newsflows from Reliance Financial and Paytms constant fall have spooked sentiments in a market that is already experiencing high inflation and low interest rates.

Investor sentiment is being affected by the reemergence of Coronavirus epidemics in Europe, the US and other countries.Inflationary pressures have been heightened by comments made by Chinese advisers about the risks of "stagflation" Siddhartha Khenka, Head, Retail Research, Motilal Oswal Financial Services said that the cancellation of Reliance-Aramcos deal, withdrawal of farm laws and persistent selling by FIIs, as well as the disappointment at Paytm listing, impacted market sentiments, leading to a free fall.

The market will likely continue its consolidation because valuations are high and global cues keep the markets volatile.Inflation concerns are the main focus of headlines, and the Fed is beginning the tapering program soon.

Investors will also pay attention to the Covid situation and the impact it has on economic activity.rv/ar #Sensex #drops #cues #concerns #Mumbai #StockExchange #SenSex #Nifty #India #Economy .