Sensex falls 250 pts from day’s high, Nifty below 22,700: Key reasons behind market decline

Reports coming in for today mention that Key market indices The two key benchmark indices declined from day's high due to various reasons, including elevated crude prices.

At 11:22 am, the Sensex was up 110.45 points or 0.15% at 72,639.52, and the Nifty was down 34.85 points or 0.15% at 22,681.35. Around 2,104 shares advanced, 1,619 shares declined, and 168 shares were unchanged.

Sensex declined 250 points from day's high while Nifty was trading below the psychologically important 22,700-mark.

Pharma and healthcare stocks remained under pressure, with the Nifty Healthcare and Nifty Pharma down 1.7% and 0.9%, respectively, to be the worst hit sectoral indices.

Key reasons behind market slide

1) Elevated crude prices

Oil price marks remained slightly elevated after US President Donald Trump denied plans to ease ‌sanctions on Iran and release frozen funds in exchange for Iranian concessions on its nuclear programme. Qatar Tuesday stated it hopes that shuttle diplomacy between Iran and the US can lead to a breakthrough. The November futures contract of Brent crude was at $103.17 per barrel, up 0.6% from Tuesday. The contract rose after falling in the previous session amid signs of a recovery in crude supply from West Asia. 2) FII selling

Foreign market participants sold shares worth Rs 9,980 crore on a net basis on Tuesday, marking their biggest outflow in around four months. They have offloaded $2.7 billion of worth shares in September, taking the year-to-date selling to $26.75 billion. 3) Technical reason

Nifty has to decisively trade above 22,750 for any bullishness to be witnessed in the markets, stated market watchers.