Domestic markets dive into deeper negative territory, Sensex falls over 1,000 points

Domestic markets dived deeper into negative territory on Tuesday, tracking the fall in global oil prices. High levels of volatility were also seen during afternoon trade as both benchmark equities crashed.

At around 2:45 pm, BSE Sensex was trading 1,094.78 points or 3.46 per cent lower at 30,553.22, while NSE Nifty fell below the 9,000-mark.

Apart from Nifty pharma, all other sectoral indexes were trading in red. Some FMCG firms also rallied but the overall sentiment in the market remains weak.

Oil and energy companies took the biggest hit as global oil prices are rapidly falling due to lack of demand in the wake of the Covid-19 pandemic.

Experts say that it could take a long time before the oil market stabilises, as producers are now sitting on large oil reserves due to lower demand.

Heavy selloffs were also witnessed in the domestic equity market due to the sharp drop in oil prices.

Market sentiments have been weak through out the day, with a sharp drop during afternoon trade as global oil prices collapsed further.

Global stock markets also showed signs of weakness, mainly due to the sudden drop in oil prices. Wall Street major stocks closed sharply lower on Monday as investor sentiment was heavily dented by a record drop in oil prices.

Asian markets also opened in negative territory on Tuesday after US crude futures turned negative.

Besides all these factors, the corporate results season is also expected to chart the course for domestic markets during the month. Investors will be keenly tracking these results.

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