Why did the Nifty and Sensex correct so sharply on 11 June 2020?

While the Nifty corrected by 214 points on 11 June, the Sensex dropped over 700 points during the session with most sectors coming under heavy selling pressure. The sentiments in the market were badly dented by the Fed projections on GDP growth and jobs. The Fed had projected GDP contraction of 6.5% in 2020 and expected the unemployment level to touch a massive 9.5% by end of the year. This had an impact across markets in Europe and Asia and rubbed off on India too. The SC judgment offered little respite to the telcos even as it offered some relief to the PSUs. That also added to the pressure on the markets. All sectoral indices were in the red with PSU banks and metals the worst hit. Asian markets cut a 10-day gaining streak. Weak oil prices also added to the slowdown worries.