The Indian stock markets continued their free fall for the third day since the presentation of the Union Budget 2018-19. If experts are to believed, the slump is likely to continue for the next few days.
Stock market expert Sunil Shah attributes the reason for the fall seen in global markets.
"There is a selling pressure and there is no new buying emerging. So first, the scenario will stabilize at some point in time. The scenario will stabilize when the valuations become attractive, then we will see new buying emerging. Till that time, we are in the midst of huge volatile markets and this will remain for some days," Shah told ANI.
Experts believe that the LTCG Tax, which Finance Minister Arun Jaitley reintroduced in the Budget 2018-19, is also a possible reason why the stock markets are rallying in red, even as global trends remain the major driving force.
"Of course, the sentiment post-Budget is something which is not favorable to the Bullish trend in the market. But today's fall is because yesterday Dow Jones went down by 1000 point and NIKKEI is down by more than 1000 point. Hang Seng is down by more than 1000 point. Our market is mimicking the same thing," Shah added.
At the time of filing this report, the BSE Sensex was down 430.67 points at 34,326.49. While Nifty was down 129.10 points at 10,537.45.
Earlier in the day, the Dow Jones Industrial Average fell 1,175.21 points to 24,345.75.
The S&P 500 lost 113.19 points or 4.10 percent to 2,648.94 and the NASDAQ dropped 273.42 points to 6,967.53.
Hong Kong's Hang Seng Index closed down 5.1 percent at 30,595.42.
Japan's Nikkei also fell more than 1,500 points, its worst point drop since 1990.