Three reasons why market tanked over 4% from lifetime highs in 7 sessions

STOCK MARKET - With the benchmark indices extending losses for the fifth straight session on Friday, the market seemed to have entered the correction zone after a record run of the last few months. The S&P BSE Sensex and the Nifty50 dipped over 4% from the record highs they hit on August 2.

On Friday, the Sensex tanked as much as 336 points to 31194, while the broader Nifty50 slipped 115 points to 9,704 in intraday trade. Both the indices had hit their respective lifetime highs of 32,686 and 10,137 on August 2.

Below are three reasons that spooked the investors on Dalal Street:
1) Geopolitical tensions

The ongoing border dispute in Doklam between India and China, and the war of words between the heads of US and North Korea have made investors jittery about the outlook of market. Overnight, Wall Street closed sharply lower after US President Donald Trump made another provocative statement against North Korea, saying that his threat to unleash “fire and fury” on the country was not “tough enough”. Taking lead from Wall Street, Asian markets also slumped on Friday. Meanwhile, the standoff between Indian and China continued in Doklam with little signs of de-escalation of military force from either side.

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