Why Sensex Crashed 600 Points, Biggest Fall in 2 months

Sensex corrected by 550 points Nifty almost 200 Points making today as Black Monday,biggest decline in 2 months. Last big decline was seen on 06 Jan 2015. Budget was good market rallying and out of no where we saw a correction. I am discussing few points below which would had led to the correction.

Concerns over Fed rate hike

Equity Market likes liquidity, Friday Strong US jobs data and Unemployment rate coming sub 6%  fueled expectations that the US Federal Reserve may raise interest rates sooner than previously thought.

Hike Rate means sucking liquidity out of system and this will flight to safe assets in Bonds and stronger currency like USD and money getting sucked out of Emerging market. India Markets have received $11Billion in 2015 till date and up 8% till date so profit booking can be done by FII's.

 

Expensive valuations of Stock Market

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