Stock market investors suffered huge losses on Tuesday.Image Credit source: ChatGPT
Due to US President Donald Trump’s tariff threat and France’s insistence on not joining the Peace Board, the global stock market has once again seen a decline. If we talk about the Indian stock market, a fall of more than 1,073.91 points has been seen in the Sensex during the trading session. The Sensex has fallen by more than 1300 points in two consecutive days. Due to which stock market investors have suffered a loss of more than Rs 9 lakh crore on Tuesday alone and Rs 11.50 lakh crore in two days so far.
However, the trade war between France and Trump that is the reason for the decline in the stock market is not a new story. Apart from this, the main reasons are selling by foreign investors, poor third quarter results, decline in Asian markets, fall in rupee, waiting for US court’s decision on tariffs, Nifty expiry, fall in shares of public sector banks. Let us also tell you what kind of figures are being seen in the stock market.
Big fall in stock market
A big decline is being seen in the stock market on Tuesday. If we look at the data, at 3:10 pm, the main index of Bombay Stock Exchange, Sensex, is seeing a decline of 960.77 points and is trading at 82,280.61 points. While the Sensex fell by 1098.66 points during the trading session. 82,147.52 It had reached 100 points which is the lower level of the day. The special thing is that in two days the Sensex has seen a fall of more than 1300 points.
On the other hand, the main index of National Stock Exchange Nifty fell by 351.10 points.25,235 . 95Appeared to be trading on numbers. Whereas during the trading session, Nifty reached the lower level of the day with 25,233.70 points. If experts are to be believed, a bigger decline may be seen in Nifty in the coming days.
Market fell due to these 10 reasons
- Concern about trade war: Trade war concerns resurfaced following renewed uncertainty over US tariff policies, which weighed on global risk appetite. The rise in US treasury yields and fears of increasing trade tension between America and Europe led to selling in global markets, which also affected Indian stock markets.
- FII selling: Continuous selling by foreign institutional investors (FIIs) also dragged the market down. FIIs sold shares worth Rs 3,262.82 crore on Monday, which is the tenth consecutive session this month when net outflow was seen. Except for minor purchases on January 2. Continued foreign selling has put pressure on major indices and limited buying interest.
- Mixed third quarter results: Signals related to the results remained mixed. Shares of IT sector giant Wipro Ltd fell sharply on Monday after it released December quarter results as well as weaker-than-expected near-term estimates. The IT index fell 1.1 per cent and was the biggest loser among the major sectors.
- Weak Global Signals: Weak global cues further weakened market sentiment. In Asian markets, South Korea’s Kospi index was higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng indices were in decline. US markets were closed on Monday due to the Federal Reserve. On January 20, Wall Street futures were trading down more than 1 percent.
- India’s VIX falls: India’s VIX, a gauge of market volatility, rose more than 4 percent to 12.34, indicating growing nervousness among investors.
- Rupee decline: The rupee fell 8 paise to 90.98 against the US dollar due to strong demand for the dollar from importers and continued withdrawal of foreign funds. Forex traders said geopolitical uncertainty and weak domestic stock markets are keeping pressure on the currency.
- US Supreme Court’s decision on Trump’s tariffs: Investors are also waiting for the US Supreme Court’s possible decision on tariffs during Trump’s tenure. Vijayakumar said an adverse decision could rapidly change market dynamics, although the timing and outcome are still uncertain.
- Increase in crude oil prices: Brent crude oil prices rose 0.11 percent to US $ 64.01 per barrel. Rising crude oil prices raise concerns about inflation and fiscal pressures in India.
- Nifty expiry: Market fluctuations continued due to the weekly expiry of Nifty on Tuesday. Expiry days typically see higher volatility due to sales and rollovers of derivative positions, leading to sharp intraday fluctuations in index levels.
- Decline in index of public sector banks: The public sector bank index fell by more than 1 percent amid widespread selling. Central Bank of India and Punjab & Sind Bank were among the major laggards, falling up to 3 percent.
Investors lost Rs 9 lakh crore
Investors have suffered huge losses due to the fall in the stock market. This loss is related to the market cap of BSE. A day earlier the market cap of BSE was Rs 4,65,68,777.25 crore, which came down to Rs 4,57,15,068.67 crore on Tuesday. This means that investors have suffered a loss of Rs 9,02,669.32 crore during the trading session. If we talk about the fall of two days, then investors had suffered a loss of more than Rs 2.50 lakh crore. This means that stock market investors have suffered a loss of more than Rs 11.50 lakh crore in two days.