Stock Market Crash Reasons: There has been a huge decline in the Indian stock market on the last trading day of the week. Key benchmark index Sensex slipped 961.42 points and ended the day at 81,287.19. At the same time, Nifty also turned red like a tomato.

Nifty closed at the level of 25,178.65 with a fall of 317.90 points. There was a period of selling in stocks of FMCG, auto, realty and pharma sectors. According to the information, due to this fall in the market, investors lost about Rs 5.5 lakh crore. Let us know, what is the reason for this decline?

1. Uncertainty arising from America-Iran dispute

There was no positive result of the talks between the US and Iran on the nuclear program on Thursday. The distance between the two countries still remains. Meanwhile, the government of US President Donald Trump has talked about gathering a large fleet of aircraft and warships in such an environment.

Due to which an atmosphere of uncertainty is created. Meanwhile, investors have distanced themselves from the domestic market. This is also believed to be a reason behind the decline in the market.

2. Indian currency is running out of steam

The rupee slipped against the dollar during the trading day. The rupee started the day at 90.9475 dollars. There was pressure on the rupee due to selling by foreign investors and weak start of domestic stock markets.

3. Selling by foreign investors

Foreign investors had sold shares worth about Rs 3,466 crore on the previous trading morning. Whose effect was visible on today’s market. Selling by foreign investors also became the reason for this decline.

4. Global weakness became the reason

America’s Wall Street’s tech-heavy Nasdaq Composite Index closed with a decline on Thursday. The impact of the ongoing turmoil in the world of technology has also reached the Indian market. Shares of the world’s famous company Nvidia fell by 5 percent. At the same time, Alphabet’s shares fell by about 2 percent and Amazon’s shares fell by about 1 percent.

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Share Market Crash: Domestic stock markets closed with losses for the third consecutive trading session on Wednesday amid increasing geopolitical tensions, weak signals from global markets and continued withdrawal of foreign capital. Sensex fell 271 points in a volatile session. Whereas Nifty fell by 75 points.

Situation of Sensex and Nifty

According to traders, the rupee falling to a record low against the dollar and selling in financial, banking and consumption-related stocks also kept pressure on the market. BSE’s benchmark index based on 30 shares closed at 81,909.63 points, falling 270.84 points or 0.33 percent after huge fluctuations.

At one time during trading, the Sensex fell by 1,056.02 points to 81,124.45. At the same time, the National Stock Exchange’s 50-share standard index Nifty slipped 75 points or 0.30 percent and closed at 25,157.50 points.

Who became the top gainer-loser?

Among Sensex constituents, ICICI Bank, Trent, Bharat Electronics, Axis Bank, HDFC Bank, Larsen & Toubro, State Bank of India and Maruti Suzuki were major losers. On the other hand, shares of Eternal, UltraTech Cement, InterGlobe Aviation (ie Indigo) and Reliance Industries registered gains.

Foreign investors sold

According to stock market data, on Tuesday, foreign institutional investors (FIIs) sold shares worth Rs 2,938.33 crore. While domestic institutional investors (DIIs) made net purchases of Rs 3,665.69 crore. In other markets of Asia, Japan’s Nikkei closed in loss.

While South Korea’s Cospi, China’s Shanghai Composite and Hong Kong’s Hang Seng index closed with gains. A declining trend was seen during trading in European markets.

expert opinion

Vinod Nair, Head of Research, Geojit Investments Limited, said, ‘Domestic markets remained volatile due to deterioration in sentiment due to global risk factors. But the initial losses were compensated to some extent due to price-based buying at the end of the trading session.

Meanwhile, international oil standard Brent crude fell one percent to $ 64.27 per barrel. On Tuesday, Sensex fell 1,065.71 points to 82,180.47 and Nifty fell 353 points to close at 25,232.50.

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