InvestorQ : Why did the Sensex correct by 1000 points on 18 May? Which sectors led the stock markets lower?
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Why did the Sensex correct by 1000 points on 18 May? Which sectors led the stock markets lower?

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Dhwani Mehta answered.
12 months ago
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The financials fell sharply on Monday after the fourth tranche of the stimulus announcement. Shares of financial service providers including banks, NBFCs and HFCs tumbled up to 12% on the BSE. Post stimulus, there were concerns that asset quality could come under pressure due to the extended nation-wide lockdown and challenging economic environment. In addition, the decision of the government to exclude all debt associated with the pandemic from defaults from IBC and the 1-year suspension of bankruptcy proceedings were seen as credit negative. Apart from banks, NBFCs like M&M Finance also took deep cuts on the back of bad results taking other NBFCs like CIFCO, STFL along with it.

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