Sensex slumps 1,500 points in two days; here's what has spooked investors

Stock market closing: After a sharp run-up of around 17 per cent from June lows, markets have succumbed to profit booking as investors around the world become cautious.

Over the last two days, domestic equity markets have sharply treaded lower as renewed fears of stringent rate hikes took over Dalal Street. 

After a sharp runup of around 17 per cent from June lows, markets have succumbed to profit booking as investors around the world become cautious. Since Friday, the BSE Sensex, and the NSE Nifty indices have shed 1,524 points and 465 points, respectively. 

"Consolidation was triggered in the market in anticipation of tighter monetary policy by the Fed and worries over a slowdown in global economic activity. The current risk reward is not favouring investors. Rising dollar