The stock market has seen a big decline on the last trading day of the week. The special thing is that this decline has seen a decline for the second consecutive day. The special thing is that the Sensex of the main indicators of the stock market has seen a decline of more than 1200 points. Whereas on Friday, the Sensex is submerged for more than 700 points. Talk about the Nifty at the same time, that came below the level of 24,850. Amidst extensive concerns about global signals and foreign investors’ activities, there was a selling trend in finance shares, especially Bajaj Finance. Due to which the stock market investors have lost more than 6.42 lakh crore rupees.
By the way, many reasons for the decline in the stock market are being given. The most prominent reason is the decline in shares of the country’s largest NBFC company Bajaj Finance, delay in the US India trade deal, selling of foreign investors, weak global sentiments. According to experts, the UK trade deal will not affect the stock market until India has an agreement with America. Let us also tell you what kind of figures are being seen in the stock market.
Large fall in Sensex and Nifty
Both the major indices of the stock market, Sensex and Nifty have seen a major decline on Friday. Talking about BSE’s major index Sensex, 721 points or 0.88 per cent fell at 81,463. The special thing is that during the business session, the Sensex saw a decline of more than 786 points and came to the lower level of 81,397.69 points. In two business days, the Sensex has seen a decline of 1,263.55 points. On the other hand, the Nifty, the major index of the National Stock Exchange, saw a decline of 225.10 points and closed at 24,837 points. During the business session, the Nifty saw a decline of 256 points and came to 24,806 points. By the way, in the last two business days, the Nifty has seen a decline of 382.9 points.
Why the stock market broken?
Finance shares fall: The finance sector pulled the market down, the Nifty Finance Service Index fell more than 0.9 per cent. Bajaj Finance and Bajaj Finserv led the decline, which fell 4.7 per cent and 2.3 per cent respectively, as there was concerns about the assets quality in the MSME sector despite the strong income of the first quarter. Other major lenders including SBI, Kotak Mahindra Bank, Axis Bank and HDFC Bank also declined by 1.2 fees. Bajaj Finance Sensex was the most declined share.
Uncertainty for America-India Trade Agreement: Uncertainty about the possible interim trade agreement between India and the US has also affected the notion of investors. With the time limit of 1 August of Washington, the conversation on the fees on agriculture and dairy products is still stalled. The possibility of getting any success in the near future is rarely seen, as India’s business delegation has returned from Washington without any solution. The lack of formal tariffs from the US enhances uncertainty.
Continuous selling of FII: Foreign institutional investors (FIIs) have been selling pure in recent sessions, and in the last four business days they have sold Rs 11,572 crore in Indian shares. Dr. VK Vijaykumar, the main investment strategist of Geojit Financial Services, said that the market situation has weakened in the near future. The fall of FII will continue to pressure indices due to continuous selling and wide markets-smallcap stocks, where the evaluation was excessive. ”
India-Bitten Trade Deal: India and Britain on Thursday signed a much awaited free trade agreement (FTA) during Prime Minister Narendra Modi’s visit to London. Although sectors such as textile, whiskey and automobiles are expected to benefit due to reduction in tariffs, analysts believe that this agreement is unlikely to increase the market immediately without clarity on trade talks with the US.
Weak global signs: On Friday, Asian markets declined as investors made profits before a important week. Japan’s Nikkei recorded 0.8 per cent from a record height, while Hong Kong’s hang Seng fell 1.1 per cent and Australia’s ASX 200 0.5 per cent. The index of the mainland China also fell. Although the US futures market stood slightly up after strong results of alphabet, the Federal Reserve policy meeting, American payroll figures and prominent risky incidents such as profits of major technical companies like Apple, Amazon, Meta and Microsoft.