6 big reason behind 500 points fall in nifty

There's 6 big reasons behind the 500 points fall in nifty on monday 4th may 2020.

1. Q4 Earnings Disappontment & fear for worse.

March quarter earnings so far have disappointed investors. On thursday, Reliance industries, hindustan Uniliver and Tech mahindra joined peers who missed street estimates, acting as a dampener when markets reopened after and extended weekend.

It should be noted that the impact of country wide lockdown was just for a week until march. In the june quarter earnings, the real impact of the lockdown will be known.

2. Lockdown 3.0

The second extension of the lockdown, which will he into force till may 17, eased restriction into certain areas but analysts feared supply side disruptions. 

The government has designated 130 districts as red zones including most metropolitan cities, which will remain under stringent lockdown. About 284 districts have been classified as orange zones, and the remaining 319 districts as green zones.

Both orange and green zones will be allowed significant relaxation on the level and kind of economic activity undertaken on a graded basis. However, interstate transport via trains, flights and roads remain barred.

3. US- China face off

US and china which barely reaches a deal last year to end the 18 month old trade war, are now engaged in another tussle threatening more pressure on world economies and hurting the market sentiments back home.

The spat over the origin of the coronavirus put the brakes on optimism about an economic re-start even as countries around the world ease restrictions. This comes at a time when most major economies are expecting a contraction of GDP in near term.

The US tried to pin the blame of the pandemic on China, accusing the virus emerged from laboratory in the central chinese city of wuhan. 

4. Nifty top 10 drag

5. Severe Fall across all sectors

6. Weak Global cuses.

This are the 6 big reasons behind the nifty 500 points fall.

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