InvestorQ : Why did the Sensex crash by 1000 points on 15 October 2020?
sarah Leo made post

Why did the Sensex crash by 1000 points on 15 October 2020?

Rashi Mehra answered.
2 years ago

There was heavy profit booking in stocks like Reliance and also in leading IT names on Thursday that dragged the Sensex over 1000 points lower. While there was some buying in auto and metals, it was not just enough to offset the impact of the heavyweights.

In the US, the hopes of an imminent stimulus almost faded after there were huge gaps in the nature of the economic relief package. Most analysts were almost unanimous that it would be impossible to lock in the economic relief package before November 03.

With the US planning to add the China based Ant group to a trade blacklist, this is likely to worsen relations. ANT is part of Alibaba group and is one of the largest venture and PE investors across the start up ecosystem.

The resurgence of COVID is another major issue spooking the investors. Europe is planning to again shut schools and undertake larger economic shutdowns to handle the crisis. Most countries are already at their edge and that is making the markets jittery.

It was largely a story of profit booking as IT stocks like HCL Tech, Tech Mahindra, ICICI Bank, Bajaj Finance, TCS and ITC were among other major names that corrected sharply during the day.