The Indian equity benchmarks crashed on Friday and posted their worst single-day performance since March 30. The Sensex and Nifty mirrored losses in losses in other global markets as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets. The Sensex dropped as much as 2,149 points or 4.2 per cent and Nifty 50 index crashed 4.2 per cent to fall below its important psychological level of 14,500 mark.
The Sensex tumbled 1,939 points or 3.8 per cent to close at 49,099.99 and Nifty 50 index cracked 3.76 per cent or 568 points to settle at 14,529.15.
“Low interest rates made the rally possible form levels of 7,500 and the Nifty has doubled from those levels in last 12 months now signs of interest rate reversal are visible which means liquidity will dry up and easy money will not sustain. Nifty can go down 13,900 levels in the near term given the high valuations Nifty is trading at,” A K Prabhakar, head of research at IDBI Capital told NDTV.
