share market downImage Credit source: ai generated
The greenery that was prevailing in the stock market for the last three days has suddenly come to a halt today. The continuously rising market took a U-turn on Thursday and did not even give investors a chance to recover. There was tremendous volatility in the market on the fourth trading day of the week, which had a direct impact on the pockets of common investors. In a few hours of trading, a large part of investors’ hard-earned money, about Rs 2.62 lakh crore, was lost. Actually, tomorrow i.e. on Friday the Reserve Bank of India (RBI) is going to announce its monetary policies.
Expiry spoiled the game
There were two major reasons for the turmoil in the market today. The first and most important reason is the RBI decision coming tomorrow. Investors are doubtful about what stance the Central Bank takes regarding interest rates and due to this fear, they thought it better to withdraw today. Apart from this, today was also the weekly expiry of Sensex. Usually huge fluctuations are seen in the market on the day of expiry and something similar happened today also. There was uncertainty in the market since the morning and by the end the selling pressure increased so much that the market stopped in the red.
Metal sector was hurt the most
Sector wise, today the metal sector has hurt the market the most. Heavy selling was seen in metal stocks, due to which the Nifty index fell by more than 1 percent. It seemed that today the responsibility of managing the market was taken up by the public sector banks (PSU Bank) and the healthcare sector. Both these sectors tried their best to pull the market up, but they did not get the support of other sectors. There was a slight rise of less than half a percent in PSU banks and healthcare, which proved insufficient to stop the big fall in the market. There was no significant response from any other sector, due to which the market sentiment further weakened.
Rs 2.62 lakh crore lost in one stroke
The worst impact of this tug of war in the market has been on the wealth of investors. If we look at the data, there has been a huge decline in the market cap of companies listed on BSE today. One trading day earlier, i.e. on 4 February 2025, the total market cap of all the shares present on BSE was Rs 4,69,16,207.26 crore. When the market closed today, this figure came down to Rs 4,66,52,710.72 crore. This simply means that Rs 2,62,010.31 crore was wiped out from investors’ capital in just one day’s trading.
At the end of the day, both the major indices of the market closed in the red. Sensex closed at the level of 83,313.93 with a huge fall of 503.76 points, which is a decline of 0.60 percent. At the same time, Nifty 50 also could not save itself and closed at 25,642.80, falling 133.20 points. This decline was 0.52 percent.