Stock Market Update: Indian market fell flat, investors lost Rs 2.89 lakh crore in two days

[ad_1]

Stock Market Update: Indian stock markets continued to fall for the second consecutive trading session on Wednesday and BSE Sensex plunged by 796 points. The market suffered losses due to heavy selling in shares of banks and petroleum companies amid a weak trend globally before the decision on the policy rate by the US central bank Federal Reserve. The Sensex based on 30 shares closed at 66,800.84 points with a fall of 796 points or 1.18 percent. At one time during trading it had fallen to 868.7 points. National Stock Exchange’s Nifty also closed at 19,901.40 points, below the level of 20 thousand points, with a decline of 231.90 points or 1.15 percent.

Market softened due to cautious approach

According to analysts, US bond yields have reached a 16-year high. Apart from this, investor sentiment was also affected by the fear of rising commodity inflation due to high crude oil prices. The market softened due to withdrawal of foreign funds and cautious stance before the decision on policy rates of central banks of various countries of the world. Meetings of the US Federal Reserve, Bank of England and Bank of Japan are scheduled to be held this week. Among Sensex companies, HDFC Bank fell the most by four percent. Apart from this, JSW Steel, Reliance Industries, UltraTech Cement, Maruti, Tata Steel, Wipro, Tech Mahindra, Bharti Airtel and Larsen & Toubro were also major losers. On the other hand, gaining stocks include Power Grid, Asian Paints, Sun Pharma, Axis Bank, NTPC, ITC and Infosys.

What do experts say

Vinod Nair, head of research, Geojit Financial Services, said that domestic markets remained under pressure due to rising US bond yields and strong dollar. There are concerns about the upcoming policy of the Federal Reserve, interest rate trend and rising oil prices. He said Bank Nifty underperformed today due to decline in net returns due to rising cost of funds and decline in deposits. In the broader markets, BSE Smallcap fell 0.51 percent and Midcap fell 0.33 percent. Talking about sector wise indices, there was a decline of 1.39 percent in Financial Services, 1.39 percent in Commodity, 1.25 percent in Metal, 1.20 percent in Realty, 1.05 percent in Bankex, 0.95 percent in Telecom and 0.68 percent in Oil and Gas.

Other markets in Asia also disappointed

In other markets of Asia, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng were in loss, while South Korea’s Kospi was in profit. There was a bullish trend in early trading in the major markets of Europe. The American market was falling on Tuesday. Meanwhile, global oil benchmark Brent crude fell 1.23 percent to $93.18 per barrel. According to stock market data, foreign institutional investors sold shares worth Rs 1,236.51 crore on Monday.

Big impact on market cap

Due to the two-day fall in the domestic stock market, investors have lost about Rs 2.89 lakh crore. Earlier today, the Sensex had closed at 67,596.84 points on Monday with a decline of 241.79 points or 0.36 percent. Whereas, the market was closed on Tuesday on the occasion of Ganesh Chaturthi. With two days of decline in the stock market, the market capitalization of BSE listed companies declined by Rs 2,89,121.56 crore to Rs 3,20,51,859.15 crore. Ahead of the US central bank Federal Reserve’s decision on policy rates, the market remained at a loss due to heavy selling in the shares of banks and petroleum companies amid the weak trend in the global markets.

What are the reasons for the market falling wildly today?

• The main reason for the decline was the direct impact on the market after the merger of HDFC Bank with HDFC Limited. It dragged the overall banking index down 0.7%, which was on track for its biggest intraday decline since late August.

• The Indian stock market also took a hit due to weak US markets overnight as well as rising global crude oil prices, while the US dollar strengthened.

• Indian stock indices closed in the red on Monday, ahead of the gazetted holiday on Tuesday on the occasion of Ganesh Chaturthi. It is believed that investors may have withdrawn some of their money after the indices reached new highs last week.

• The financial market also fell by 1.2%, which is the worst session since August 3.

• Other sectors like IT and oil and gas pressured the benchmark with losses of 0.4% and 0.6% respectively.

• Among individual stocks, Reliance Industries shares also fell 1.9% on multiple block deals.

  ,with language input,

[ad_2]

Source link