Sensex tumbles 500 points, Nifty below 23,750. Check 5 key reasons behind the selloff
Summary
The Sensex fell more than 250 points and the Nifty slipped below 23,850 as higher oil prices, Middle East tensions and concern over US rate increases weighed on sentiment. Technology stocks led the decline, while the upcoming IPO pipeline added to liquidity concerns.
External shocks are overriding supportive domestic fundamentals because higher oil prices threaten inflation, margins and
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The selloff shows that macro risks can dominate domestic fundamentals and quickly raise the market's risk premium.