Until a few days ago people were asked how much they earned. But now the question arises: how much did it sink? Because for a few weeks now money has been continuously losing money in the stock market. After years of waiting, many investors' portfolios that were green have turned red in one month. Most retail investors say that everything they earned in a year was gone in a few days. In this sense, for the first time after Covid, a decrease of this type is observed.
In fact, there is an outcry among most retail investors. This is not us, the data screams. The last month's data attests that the market is going through a very bad phase. Every morning investors feel that the market will now go up. But sales are becoming more frequent every day and investors' hard-earned money is being lost. In such a situation, investors are wondering why Goddess Lakshmi got so angry with the stock market before Diwali.
Huge stock market crash
Select mid-cap and small-cap stocks have fallen 50% in the last month. If we talk about indices, Sensex has fallen by around 6500 points from its all-time high and Nifty by around 2100 points. Nifty has fallen by over 8%, while Sensex has also fallen by 8%. As a sector, the defense index has fallen 26% from its peak. While in the automobile sector there has been a decrease of 14% and in the capital goods sector of 13.5%.
The figures of losses suffered in the last month are shocking. In this selling storm, investors have lost Rs 40 lakh crore in a month. The market capitalization of BSE was around Rs 477 lakh crore on September 27, 2024, which fell to Rs 437 lakh crore on October 25.
Now, the loss can also be seen this way: The total GST collection in the financial year 2023-24 was Rs 20.18 lakh crore. While investors have lost Rs 40 lakh crore in the market in the last one month, double the amount the government earned from GST in a year has been lost in the market in the last month.
Profit booking is a big reason
Now the question arises as to why the market is falling so much and where you can turn to find support. According to experts, the profit booking comes after the huge increase in the market. Therefore, you have to be very careful when investing now. Some important reasons for the market decline are…
– Foreign investors are selling rapidly in the Indian market. They are withdrawing money from emerging markets like India and investing it in China. In the month of October alone, foreign investors withdrew Rs 1.08 lakh crore from the market. Because currently the Chinese market has a slightly cheaper valuation than that of India.
– The second quarter results of many large companies are worsening, so stocks are being hit hard. Due to this, market sentiment is continually deteriorating. Especially the results of the automotive sector, the consumer goods sector and some technology companies have been a hard blow to the market.
– In the last year and a half there has been a significant rise in fundamental stocks, but among this crowd there were also some stocks that also gained a lot, for which there was no special reason for the rise. Especially there was a huge rise in government company stocks, railway stocks, new technology company stocks and government bank stocks. Which did not correspond to growth. Especially in the mid-cap and small-cap segments, some stocks had gone crazy and are now taking a big beating. Selling is especially common in stocks with expensive valuations, and such stocks have fallen as much as 50 percent from their highs.
Where will the decline stop?
According to experts, the market is in the selling zone, but the first support for Nifty is at 24000 points, then the strong support is at 23800 points, from where the market mood may change.
(Note: Before investing in the stock market, consult a financial advisor)
