By Admin 
Stock Market News: After three days of rise, there was a sudden break in the stock market on the fourth trading day of the week. Despite the initial gains, there was heavy selling in banking, auto, metal and FMCG stocks, due to which investors suffered a huge loss of about Rs 7.55 lakh crore. There was a huge fall in Sensex and Nifty intraday and it went down by 1400 points. However, before the market closed, the Sensex fell by 1236 points and reached the level of 82,498.
At the same time, NIFTY 50 also slipped by about 400 points (about 1%) and reached 25,400. However, later it closed at the level of 25,454. The total market cap on BSE came down to around Rs 464 lakh crore.
Which stocks had the biggest decline?
There was more selling pressure in heavyweight stocks. Apart from Reliance Industries HDFC Bank ICICI Bank Kotak Mahindra Bank Larsen & Toubro, there was also weakness in Hindustan Unilever and ITC Limited. Although there was some support from the IT sector and a slight rise in the shares of Infosys and Tata Consultancy Services, it was not enough to handle the market.
Global signals have a direct impact on Indian markets. At present, investors are cautious about geopolitical tensions, global economic growth rate and the direction of interest rates. In times of uncertainty, investors move money away from risky assets (like equities) and turn to safer investment options like gold and government bonds.
This increases pressure on emerging markets, including India. Overall, global instability and selling in heavyweight stocks put brakes on the market rally. A strengthening trend was seen in Asian markets. South Korea’s KOSPI closed with a gain of about three percent, while Japan’s Nikkei 225 rose by about one percent.
What was the reason for the decline?
The markets of Hong Kong and China remained closed due to the Lunar New Year holiday. US stock markets also closed with gains on Wednesday, which supported global investment sentiment. Meanwhile, international benchmark Brent Crude rose 0.37 percent to $70.61 per barrel. The activity of institutional investors in the domestic market was positive.
According to stock market data, foreign institutional investors (FIIs) remained buyers on Wednesday and bought shares worth Rs 1,154.34 crore. At the same time, domestic institutional investors (DIIs) also purchased Rs 440.34 crore. That is, due to global signals and buying by institutional investors, a positive environment remained in the market.
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