The stock market is witnessing a decline for the 5th consecutive day.Image Credit source: ChatGPT
The stock market is witnessing a decline for the 5th consecutive day. On Friday, Sensex saw a fall of more than 450 points. Due to which Sensex went below 84 thousand points. The special thing is that after about two months, Sensex has been seen at the level of 83 thousand points. Last time during the trading session on 11th November, Sensex had reached the level of 83 thousand points. On the other hand, a decline is also being seen in Nifty.
The special thing is that in these five days there has been a decline of more than 2 percent in the stock market. In these 5 days, stock market investors have suffered a loss of Rs 11.56 lakh crore. However, on Thursday a fall of more than 700 points was seen in the Sensex. This means that Sensex has seen a fall of 1200 points in two days. Let us also tell you what kind of figures have been seen in the stock market.
Big fall in stock market
Like Thursday, on Friday also the Sensex is moving towards a big decline. Bombay Stock Exchange’s main index Sensex fell by about 473 points and reached a two-month low of 83,707.98 points. However, at 12 noon the Sensex was trading at 83,747.39 points with a fall of 438.42 points. However, the Sensex had opened at 84,022.09 points. Whereas a day earlier the Sensex had closed at 84,180.96 points.
On the other hand, the main index of National Stock Exchange, Nifty is also trading with a decline. If we look at the data, during the trading session Nifty fell by 141.7 points and reached a low level of 25,735.15 points. However, a day earlier Nifty had closed at 25,876.85 with a decline. However, this morning Nifty opened at 25,840.40 points and at 12:05 pm, Nifty was trading at 25,761.45 with a fall of 122.50 points.
5 days pushed the market back by two months
Five consecutive days of decline pushed the stock market back by two months. On January 2, the main index of Bombay Stock Exchange, Sensex, appeared at 85,762.01 points. Which came to 83,707.98 points in the trading day on 9th October. This means that the Sensex has seen a fall of 2,054.03 points. This means that Sensex has caused a loss of more than 2 percent to investors. On the other hand, the main index of the National Stock Exchange, Nifty, has also seen a big decline in these five days. If we look at the data, Nifty had closed at 26,328.55 points on January 2, which came down to 25,735.15 points during the trading session on January 9. This means that during this period, Nifty has seen a decline of 593.4 points i.e. more than 2 percent.
Main reasons for the decline in the stock market
- Continued selling by FIIs: Foreign institutional investors sold shares worth Rs 3,367.12 crore on Thursday. This was the fourth consecutive session in which selling by FIIs continued after a brief pause on January 2. The special thing is that in the month of January, foreign investors have now sold Rs 8080 crore from the stock market.
- Caution before US decision on tariffs: Investors are waiting for the US Supreme Court’s decision on the legality of the tariffs imposed by US President Donald Trump. If the tariffs are declared illegal, the US government may have to return approximately US$150 billion to importers. There was a huge fall in the market yesterday due to the possibility of imposing about 500 percent tariff on India under the provisions of the Russia Sanctions Act approved by President Trump a day earlier.
- New concerns regarding tariffs: Benchmark indices have fallen sharply in recent sessions after Trump hinted at increasing tariffs on Indian goods in protest against New Delhi’s purchases of Russian crude. In the last four sessions, Sensex and Nifty have declined by 1.8 percent and 1.7 percent respectively. Apart from this, Trump has approved a sanctions bill under which tariffs of up to 500 percent can be imposed on countries purchasing Russian oil. US Senator Lindsey Graham said he had a “very productive meeting” with Trump at the White House, in which the president approved the bipartisan Russia sanctions bill.
- Increase in crude oil prices: In the international market, the price of Brent crude oil increased by 0.53 percent to US $ 62.32 per barrel. High crude oil prices increase India’s import bill and the risk of inflation, which impacts the stock markets.
- Rupee weakness: In early trade on Friday, the rupee fell 7 paise to 89.97 against the US dollar due to continuous withdrawal of foreign investors and high crude oil prices. The rupee opened at 88.88 in the Interbank Foreign Currency Exchange market, but later fell further. Foreign currency traders said continued selling by foreign investors continued due to concerns over possible tariffs by the US and weak domestic stock markets, which put pressure on the foreign currency.
Loss of Rs 11.56 lakh crore in 5 days
The stock market is witnessing a decline for the 5th consecutive day. But the losses of investors have become very heavy. If we look at the data, when the stock market was closed on January 2, the market cap of BSE was at Rs 4,81,24,779.35 crore, but in the trading session on January 9, the market cap of BSE fell to Rs 4,69,69,004.46 crore. This means that investors have suffered a loss of Rs 11,55,774.89 crore during this period.