There was a sharp decline in the Indian stock markets on Friday, a lot of pressure was seen in the stock market on the last trading day of the week. Sensex fell by about 1,050 points and Nifty was trading below the 25,200 mark. The decline continued for the second consecutive session, as there was heavy selling pressure on FMCG, Auto, Realty and Pharma stocks.
The Sensex fell by more than 1,000 points to 81,159, while the Nifty 50 also fell by more than 300 points to below 25,200. According to the report of Economic Times, due to this sell-off, investors lost more than Rs 5.5 lakh crore, due to which the total market capitalization of all the firms listed on BSE has come down to about Rs 463 lakh crore.
On the Sensex, shares of Sun Pharma, Mahindra & Mahindra (M&M), Bharti Airtel and Bajaj Finserv were among the top losers, while IT stocks Infosys and HCL Tech, as well as Trent were the only gainers. The special thing is that IT stocks have also lost some part of their morning gains, in which TCS has gone into loss.
FII selling
The stock market has fallen because heavy selling by foreign investors can spoil the environment. According to NSE data, foreign investors (FIIs) sold Indian shares worth about Rs 3,466 crore yesterday morning. However, DII bought shares worth Rs 5,032 crore on Thursday.
weak global market
Wall Street’s tech-heavy Nasdaq Composite index closed lower on Thursday as the tech rally failed to maintain momentum. The share price of Nvidia, the world’s most valuable company, saw a 5 percent decline, despite a sharp rise a day earlier after reporting better-than-expected January quarter results and higher revenue estimates for the current quarter. Shares of Google’s parent company Alphabet fell nearly 2 percent, while Amazon’s shares were down more than 1 percent. AMD shares fell more than 3 percent, while Salesforce shares rose more than 4 percent due to good earnings.
US-Iran tensions
US and Iran held indirect talks on Iran’s nuclear program on Thursday. However, no deal has been reached between the two countries, leaving room for concern following rising tensions and expectations of a possible military conflict, as the government led by US President Donald Trump has amassed a large fleet of aircraft and warships in the region. Earlier, Trump had warned Iran that Iran would have to make a deal on its nuclear program in 10-15 days, otherwise very bad things would happen.
fall in rupee
The rupee has fallen slightly against the US dollar due to pressure on prices due to high demand for the dollar. The Indian rupee opened at $90.9475 against the US dollar, which is slightly lower than the previous closing level of $90.9050.
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