Market Wrap: Sensex snaps 10-day gaining streak; what led to the crash?

Snapping its ten-day gaining streak, the domestic stock market came under selling pressure on Thursday amid weak global cues and profit-booking in recent outperformers such as RIL, banks, and information technology (IT) counters.
 

The S&P BSE Sensex plunged 1,066 points, or 2.61 per cent to end the day at 39,728 levels while NSE's Nifty settled at 11,680, down 291 points, or 2.43 per cent. India Vix, the volatility index, jumped over 9 per cent to 22.05 levels.
 

29 out of 30 constituents of BSE Sensex declined. Asian Paints (up 0.3 per cent) was the only stock in the index that ended in the green.
 

In the broader market, the S&P BSE MidCap index slipped 1.75 per cent and the S&P BSE SmallCap index fell 1.45 per cent.
 

In the global markets, shares fell as governments across Europe tightened restrictions to battle an accelerating second wave of Covid-19 infections, dampening the prospects for economic recovery. Further, hopes for a US package to boost the coronavirus-hit economy before the presidential election next month have also fizzled out after US Treasury Secretary Steven Mnuchin said such a deal would be difficult.
 

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.6 per cent while Japan's Nikkei dropped 0.5 per cent.
 

Oil prices also fell as the renewed surge in the virus in large parts of the world underpinned concerns about economic activity.