How will be the stock market today after the fall?

Stock Market Today: A big fall was seen in the Indian stock market on the third trading day of the week. Both the major market indices Sensex and Nifty had fallen by more than one percent. Meanwhile, even today weak signals are being received from the market. At 7.30 am, Gift Nifty was down 57 points at 22,050 points. Whereas, in other Asian markets, ASX200 and Nikkei were down up to 0.35 percent, while Kospi, Hang Seng and Shanghai Composite saw an increase of up to 0.5 percent. In the US market, the S&P500 closed down 0.19 percent, while the Nasdaq Composite fell 0.54 percent. However, the Dow Jones Industrial Average saw an increase of 0.1 percent.

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Investors had lost Rs 13.47 thousand crores

Investors lost Rs 13.47 lakh crore on Wednesday amid heavy selling in the stock market. BSE’s 30-share Sensex fell by more than 900 points. BSE’s 30-share Sensex closed at 72,761.89, falling 906.07 points or 1.23 percent. It had fallen to 1,152.25 points during trading. With this, the market capitalization (MCAP) of companies listed on BSE decreased by Rs 13,47,822.84 crore to Rs 3,72,16,602.67 crore. During this period, shares of Adani Group fell by 13 percent. Apart from this, Power Grid was down by 7.07 percent and Coal India was down by 7 percent.

Why did the stock market fall?

• The first reason behind the decline in the stock market is the statement of SEBI Chairperson Madhabi Puri Buch in which she talked about the formation of a bubble in small cap and mid cap. He had also given a warning regarding this. Last month, mutual funds were asked by SEBI to create a system to protect the interests of smallcap and midcap investors. In this, Madhabi Puri had said that there is foam at some places in the market. Some people call it bubble, some may call it foam. It would not be appropriate to let that foam remain. He warned that the evaluation criteria are off the charts and not supported by fundamentals.
• India’s retail inflation showed no improvement in February and came close to the previous month’s level. India’s Consumer Price Index (CPI) based inflation declined to a four-month low of 5.09 percent in February.
• Selling dominated the Indian stock market on Tuesday. Due to this, most of the indices closed with red mark. Midcap and smallcap were already facing pressure. More than 80 percent of the stocks in the BSE Smallcap Index have recorded negative returns since February 19. However, in the same period Nifty has increased by about one percent.