D-St Investors Lose Over Rs. 4 lakh Crores in Market Crash!
Domestic index shares suffered yet another day of disappointment, extending their losing streak to three consecutive sessions. Last Tuesday saw a dramatic decline in equity benchmark indices, with the Sensex losing roughly 844 Points As A result of weak global market trends and an outflow of foreign funds.
Domestic index shares suffered yet another day of disappointment, extending their losing streak to three consecutive sessions.
Last Tuesday saw a dramatic decline in equity benchmark indices, with the Sensex losing roughly 844 Points As A result of weak global market trends and an outflow of foreign funds.
The 30-share Bombay Stock Exchange (BSE) benchmark fell 843.79 Points, or 1.46 percent, To Finish at 57,147.32. It plummeted during the day by 940.71 Points, Or 1.62 percent, to 57,050.40. The larger National Stock Exchange of India (NSE) Nifty Finished at 16,983.55 after losing 257.45 Points.
The market capitalization of all BSE-listed companies plunged to Rs 270 lakh crore, making Dalal Street investors poorer by Rs 4.3 lakh crore.
IndusInd Bank, Tech Mahindra, Tata Steel, Nestle, and Infosys were at the top of the list of Losers Among Sensex equities in today’s trading session, falling between 2 and 3.5 percent. Also Settling Lower were Reliance, Titan, Maruti, Wipro, and HUL. Axis Bank and Asian Paints were able to close the day on a positive note.
IndusInd Bank, Tech Mahindra, Tata Steel, Nestle, and Infosys were at the top of the list of Losers Among Sensex equities in today’s trading session, falling between 2 and 3.5 percent.
Also Settling Lower were Reliance, Titan, Maruti, Wipro, and HUL.
On the other hand, Axis Bank and Asian Paints were able to close the day on a positive note.
The Nikkei Realty index, which fell 3.07 percent, had the poorest performance overall. Also ending with losses were Media IT, the Nifty Metal, Consumer Durables and Auto indices. Smallcap50 and Nifty Midcap50 experienced declines of 1.57% and 1.68, respectively.
The factors responsible for the decline in market were:
1. FII selling: Due to macroeconomic concerns, foreign institutional investors, or FIIs, have started selling securities in the market on a net basis. FIIs have been net sellers This Month To the tune of around Rs 1,500 crore after selling Indian stocks worth over Rs 7,600 crore. Rs 2,139 crore were lost during the last Monday’s sell-off.
According to Head of Research at LKP Securities S. Ranganathan, As Currency and geopolitical risks came to the fore, India’s recent outperformance to date presented a case for FII profit.
2. Weak global markets: Asian shares were mostly weaker last tuesday as concerns over the US Fed’s Aggressive Rate Hikes increased. The Nikkei225 in Japan closed 2.64% lower, while the Hang Seng in Hong Kong fell by 2.2% and the Kospi in South Korea plunged by 1.83%. However, Shanghai made its way to the green.
In mid-session trades, Stock Exchanges in Europe were trading in the Red As The FTSE 100 dropped 1.1%, marking its fifth straight day of losses. On the other hand, the US Markets Also Had a lower closing price.
3. Bond yields: In an effort To Battle Inflation following a strong jobs report, the Treasury. The 10-year U.S. In an effort To Battle inflation, the Fed might choose to opt for a further 75 Basis Point Hike in the first few weeks of November.
4. Rupee devaluation: The Indian rupee increased 5 paisa last Tuesday to close at 82.35 against the US dollar despite the RBI’s support, but the weakening of the domestic currency has been hurting stocks. In relation to the dollar, the rupee has, at present, lost 11% of its valuation. The US dollar index was higher than 113.
5. Unending macro headache: The CEO of JP Morgan, Jamie Dimon, added to the market’s gloom by predicting a Recession Within The next 6 to 9 months.
Senior Market Analyst, OANDA, Craig Erlam, said that investors should definitely prepare for increased volatility going forward given the rising pessimism in the markets and several significant data Points due last week from the US, not to mention the beginning of earnings season with JP Morgan Among Those Kicking Things off.
The Bank of England announced it would purchase up to 5 billion pounds ($5.51 billion) per day of index-linked debt in response to a serious risk to the integrity of the UK financial system.
Meanwhile, Geojit Financial Services’ head of research, Vinod Nair, said that due to growing geopolitical Unrest As Well As concerns about the economic recession, investors are becoming more risk-averse and investors’ caution ahead of the release of inflation data kept a better-than-expected start to IT earnings from improving Market Sentiment.
edited and proofread by nikita sharma
