The downward trend in the Indian Stock Exchange continues. Due to many factors, including selling by foreign investors, Sensex-Nifty cannot rise. Investors are losing their hard-earned money due to the market crash. If you look at the drop in the last two days, there has been a huge drop of Rs 13 lakh crore in the market capitalization of companies listed on the Bombay Stock Exchange (BSE), while the trend of fragmentation market has continued for about a month and a half. The stock market may remain sluggish even on Thursday, the fourth trading day of the week, as pressure is being seen on Gift Nifty. However, there has definitely been an increase in the US market.
The market was very broken yesterday
After Tuesday’s fall in the stock market, chaos also reigned on Wednesday. BSE Sensex opened at 78,495.53 level and closed at 77,690 level, falling 984.23 points or 1.25 per cent. On the other hand, NSE Nifty also started trading with a decline and like the Sensex, the speed of its decline increased such that it closed at the level of 23,559.05 with a drop of 324.40 points or 1.36 percent. Due to this market crash, around 8 lakh crore investors lost money on Wednesday. While earlier on Tuesday, around Rs 5 lakh crore was spent.
What signals do we receive from global markets?
Not only the Indian market but also the Asian markets have been experiencing slowness in the last few days. There is pressure on Gift Nifty and it is seen in the red zone. However, if we talk about the American markets, after the publication of US inflation data, the Dow Jones and S&P 500 indices closed with gains, but the Nasdaq closed with a drop in the red.
Due to all these signals, there may also be a slowdown in the Indian stock market on Thursday. The impact of continued selling by foreign investors and weak September quarter results from large companies is also being seen in the market. Experts also say that until FII withdrawal stops, fluctuations in the stock market may continue.
Nifty fell 10 percent from the high
Although there has been a huge decline in the stock market for the past two days, except for one or two days, the trend of market collapse has continued for more than a month and a half. This can be gauged from the fact that during this period Nifty has fallen about 10 percent from its 52-week high of 26,277. On the other hand, if we talk about Sensex, it has fallen by 8,288 points from its all-time high of 85,978.
Talking about losses, BSE’s market capitalization on September 27 was Rs 477 lakh crore, which has now come down to Rs 432 lakh crore by November 13, 2024. That means there has been a decline of Rs 45 lakh crore lakh crore in investors’ valuation during this period. In simple words, investors have lost Rs 45 lakh crore.
Why does the market fall every day?
The main reason for the stock market decline is the poor quarterly results of large companies. From Reliance to Asian Paints to IndusInd Bank, the results have been the scariest. The second major reason was the rise in US 10-year bond yields and the dollar hitting its highest level in four months. Investors are also worried about the strength of the dollar, because experts expect that after Trump is president, inflation will rise due to strong US economic growth and aggressive trade policies. Apart from this, the inflation rate in India has exceeded the limit set by the RBI.
(Note: Before making any investment in the stock market, definitely consult your market experts.)
