Sensex tanked over 700 pts from day's high: Three factors behind the crash today

Sensex and Nifty gave up nearly all their gains in the fag end of trade on Thursday. However, the Indian stock market rose for the sixth straight session boosted by investor sentiment post GST rate cut and increased festive spending. Sensex rose 130.06 points, or 0.15 per cent, to close at 84,556.40. Similarly, Nifty50 added 22.80 points, or 0.09 per cent, to end at 25,891.40.

Sensex rose to a high of 85,290 in the current session. However, the 50-stock index gave up 734 points form high point of the day during today's close. 

Here's a look at factors that trimmed the Sensex and Nifty's rally margin today. 

Profit-booking 

Investors resorted to profit booking at higher levels as market rallied for the sixth staright session. Analysts said the weekly expiry also led market paticipants to book profit in the latter part of the trading session today. 

Crude oil price 

Brent crude oil prices rose 5.40% to $65.97 per barrel.  A rally in the oil prices weakened market sentiment, raising concerns about rising inflation and import bills.

Global markets 

Asian markets were under pressure today. Japan's Nikkei 225 closed 636 pts lower at 48,671 . Taiwan Weighted also slipped 117 pts to 27,532. 

Shanghai's SSE Composite, and Hong Kong's Hang Seng index were all in the red. US markets also closed weak last night, impacting domestic trading sentiment. The weakness in the Asian markets came on the back of correction in the US market overnight. 

The tech-heavy Nasdaq Composite lost 0.9% to 22,740.40, the S&P 500 dropped 0.5% to 6,699.40, and the Dow Jones Industrial Average closed 0.7% lower at 46,590.41.