Why did the Sensex crash by 400 points on 20 August?

Stocks fell sharply as the Sensex lost over 400 points on Thursday after there was a virtual global sell-off on concerns over rising US-China tensions. Financials lost the most, falling over 1.31% each. HDFC Bank and Axis Bank were among the worst hit in the day.

The reaction came in response to the US Fed statement which signalled that the growth worries could only deepen. Banking, Finance and Energy were the top losers which impacted market sentiments. Power and metals were buoyant in trades.

The market has become more of a stock specific market with a bottom up approach more suited in the current market conditions.