Stock market continues to fall
On the last trading day of the week, the stock market saw a big decline. The special thing is that on Thursday, as much recovery was seen in the last 120 minutes of the stock market. All that recovery drowned in the fall of Friday’s stock market. Where the Sensex saw a decline of more than 750 points and came to the level of the first week of May. On the other hand, the Nifty also saw a decline of more than 230 points.
According to experts, from US President Donald Trump, suddenly doubled the tariff on Indian exports to frequent evacuation of foreign investors and the weak results of the first quarter and global and domestic challenges weakened the perception of investors. The special thing is that these investors have lost more than 4.72 lakh crore rupees. Let us also tell you what kind of figures have been seen in the stock market.
Large fall in Sensex and Nifty
On the last trading day of the week, the stock market saw a big decline. The Bombay Stock Exchange’s major index Sensex Sensex fell 765.47 points, or 0.95 per cent, to close at 79,857.79. Whereas during the trading session, the Sensex came to the level of 79,775.84 points early in May. On the other hand, Nifty, the major index of the National Stock Exchange, fell at 232.85 points, or 0.95% to close at 24,363.30. During the trading session, the Nifty came to the level of 24,337.50 points at the beginning of May. If we look at the stock market figures, the stock market has seen a decline in the 6th consecutive week.
Five reasons for the decline in stock market
50% tariff of Trump: After US President Trump’s decision to increase tariffs on Indian exports to 50%, selling was the most impact in export-oriented sectors. This step was taken in response to India’s continuous oil trade with Russia. This is one of the biggest tariff growth ever on a American trading partner and has shook the trust of investors in many sectors. Bonanja’s research analyst Nitant Darekar said in the media report that an increase in 25 per cent to 50 per cent tariffs will create field-specific pressure rather than extensive market disruption for Indian shares. A limited 9 per cent direct investment of Nifty 50 in the US, which is primarily IT service centralic, and which exempt from object-based fees provides adequate protection.
Constant selling of foreign investors: Increasing the fall pressure further, foreign institutional investors (FIIs) remained in a selling posture in the tenth consecutive session. On August 7 alone, he withdrawn Rs 4,997.19 crore from Indian stock markets, and the total withdrawal in August has now exceeded Rs 15,950 crore. The $ 4 billion out -flow indicates deep restlessness since July. Global Investors are changing their position in response to the risk-gen ratio change, which has now become more complicated due to the tariff growth by President Trump. Although domestic perception has not yet fully assessed the loss, FIIs are already working on it.
Lack of first quarter earnings: The corporate results have not been able to give any support amid growing global pressure. Last month, the Nifty IT index has fallen by 10 per cent, and there is no significant rise in the Nifty Bank. According to the ET report, India’s top 9 private banks recorded only 2.7 percent profit growth in the first quarter, which shows weak loan interest and sluggish economic speed. Vinod Nair, the research head of Geojit Investments, said that the domestic stock market faced an unstable week amid growing uncertainty and slow income over trade talk.
Dollar surge and rupee drop: The US Dollar Index rose 2.5 per cent to 100 per cent last week, which is its fastest weekly growth in almost three years. This increased the cost of foreign loan and the outflow of capital intensified from emerging markets. On Friday, the index was trading 0.2 per cent to 98.188, as the dollar was equally pressure on the currencies and equity flows of the emerging markets.
Investors lost 4.72 lakh crores
Stock market investors have suffered a big loss on Friday. The loss and benefit of investors is associated with BSE’s Market Cap. Looking at the data, the market cap of BSE was Rs 4,45,676.87 crore on Thursday, which has come down to Rs 4,40,63,525.24 crore on Friday. This means that the market cap of BSE reduced by Rs 4,72,151.63 crore. This is also the loss of the stock market investors.