Sensex bleeds; expert blames it on NPAs, GST and global factors

Mumbai Feb 10 (KNN) The Bombay stock Exchange (BSE) closed at 21-month low following downtrend in global stocks that fell on alarming concerns about the health of world banks. Markets ended at their lowest level since May 2014 amid a sell-off in state owned banks after they reported huge losses because of higher provisioning on account of rising non-performing assets.

The S&P BSE Sensex ended down 262 points at 23,759 and the Nifty50 closed 83 points lower at 7,216

However, the Market experts see the internal and external issues responsible for it, Sunil Shah, a marker expert from Mumbai said that there are many factors which includes internal as well as external reasons for this slowdown in the market.

He said that Global investors are withdrawing their money from the market which is a global factor.

“China’s slowdown is also a matter of concern for the investors,” he added.

When asked about the internal factors, he clearly said that Government has failed to get the Goods and Services Taxes (GST) passed which is leading to lose the trust in the Government and investors are still confused.

He also said that Non Performing Assets (NPAs) of the Indian Banks have increased which is also one of the prime reasons for the plunging of markets.

However the GDP growth is looking quite impressive but the investor is still confused in macro numbers.

Indian economy and the currency are amongst worst performing after China’s economy and currency, said the expert.

Banking and financial shares are leading the decline in local equities after a horde of public sector banks reported losses in December quarter on account of rising non-performing assets. (KNN Bureau)