After September 24, once again there was a huge sell-off in the stock market. The BSE Sensex fell 1066 points to close at 39,728. At the same time, the Nifty fell 290 points to close at the level of 11,680. In the midst of this quandary, all stocks except Asian Paints in the Sensex fell to a red mark. Investors lost Rs 3.25 lakh crore due to the fall in the stock market.
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The market capitalization of all listed companies on BSE declined to Rs 157.31 lakh crore. HDFC Bank closed down 3.5 percent and Kotak Mahindra Bank fell 3.4 percent. Talking about the sector, IT and banking index declined the most. The Nifty IT index fell 3 percent on Thursday. Let us know what are the reasons behind this big fall in the market….
Preparation for lockdown again worldwide
The governments of European countries are once again increasing the vigor to deal with the second wave of Kovid-19, affecting the economy recovery. France has imposed curfew, while other countries are closing schools. There are cancellations of surgery in hospitals. There are also reports that 1 lakh new cases are coming in Europe every day. Whereas, more than 50,000 new cases are coming to the UK every day, so the economy is sold out in the coming days due to the possibility of weak economy.
Expectation of relief package in America ends
The last hope of investors in the US was also over, in which he believed that President Trump could announce the package before the elections. Presidential elections are due in the US in November. Due to this, selling has increased.
Weak Global Signs
Taking a cue from international markets, the Indian stock market also opened with weakness today. In other markets of the world, China’s Shanghai in Asia, Hong Kong, Tokyo in Japan and Seoul in South Korea declined by two percent. Europe’s major markets recorded a decline of up to three percent in early trade. Meanwhile, the international oil standard Brent crude was trading at 42.38, down 2.17 percent. The rupee fell 5 paise to close at 73.36 against the US dollar in the interbank foreign exchange market.
Traders said that after the recent spurt in the domestic market, investors considered profit-booking reasonable. Profit booking was a major reason for the market decline. The market continued to boom for the last 10 days. According to experts, the correction was scheduled in the technical chart.
Guess proved wrong
Vinod Nair, head of research, Geojit Financial Services, said, “The market was up on the expectation of a big stimulus package, but there was no announcement about the package in India. Again the package has been delayed in the US and Europe. At the same time, there is a pressure on economic revival due to the rapid rise in cases of covid-infection. He said, “The scope of the security has come down a little bit due to the high price of shares and softening in economic revival. The trend in the future will depend on the announcement of measures in terms of incentives and the second quarter financial results of the companies.