Stock Market Loss: Investors lost Rs 5 lakh crore on Thursday due to the breakdown of more than two per cent of the domestic stock market yesterday. Expectations of a pick-up in retail inflation in India, disappointing performance by companies and depreciation of the rupee against the dollar dominated investment sentiment throughout the day, amid a fall in global markets as inflation remained at the highest level in the US.
How Sensex and Nifty closed
Market capitalization of companies listed on BSE declined by Rs 5.25 lakh crore to Rs 2,40,90,199.39 crore due to heavy selling. The market capitalization yesterday stood at Rs 2,46,31,990.38 crore. BSE’s 30-share sensitive index Sensex closed at 52,930 points below the psychological level of 53 thousand points, down 1,158 points, or 2.14 per cent. There was also a selloff in the medium and small companies of BSE.
The Nifty of the National Stock Exchange closed at 15,808 points, down 359 points, or 2.2 percent. Five out of 50 companies in Nifty remained in the green while the remaining 45 remained in decline. Indices of all 20 groups of BSE remained in decline. The power sector declined by more than four per cent.
Other reasons for the fall of the market
Selling dominated the Sensex companies so much that 29 out of 30 companies remained in the red mark. Only Wipro’s share registered a rise of 0.55 percent. Due to the fear of increasing interest rate and weak performance of companies, the trend of investors has reduced in the stock market. Meanwhile, the US dollar also reached a 20-year high. Against the dollar, the rupee has fallen sharply to the level of Rs 77.63 per dollar.
Foreign markets also declined yesterday
Foreign markets also saw a decline. Japan’s Nikkei, Hong Kong’s Hangshang, China’s Shanghai Composite, Britain’s FTSE and US’s S&P 500 all fell. Market sentiment has also been adversely affected by foreign portfolio investors becoming sellers.
What’s ahead, say experts
According to market analysts, investors fear that central banks may further increase interest rates to control rising inflation, which will slow down the pace of the global economy. Sugandha Sachdeva, Vice President, Commodity & Currency Research, Religare Broking, said the rise in crude oil prices, the uncertainty prevailing in the geopolitical scenario due to the ongoing war in Ukraine and the possibility of further tightening of monetary policy by the US Federal Reserve. There was an adverse impact on investment sentiment. He said that investors fear that due to increase in the interest rate, the pace of growth of the global economy will slow down.
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