By Admin 
Stock Market News: Amid continuous selling by foreign institutional investors (FIIs) and increasing geopolitical uncertainties, the Indian stock market again witnessed huge chaos on the last trading day of the week. Caution before the Union Budget and uncertainty regarding the third quarter results of companies weakened investor sentiment. This had a direct impact on the market and BSE Sensex closed at 81,537.70 with a fall of 0.94 percent or 770 points. At the same time, NSE’s Nifty-50 also slipped by 241 points or 0.95 percent to the level of 25,048.65.
Why does the stock market crash?
The biggest impact of this decline was seen in midcap and smallcap stocks. The BSE Midcap index fell by about 1.6 percent, while the Smallcap index recorded a huge fall of up to 2.2 percent. This clearly indicates that investors are increasingly withdrawing money from risky stocks and turning towards safer options. Selling in small and medium stocks is an indication that there is an atmosphere of fear in the market.
Due to this big fall in the market, investors had to suffer a loss of about Rs 6 lakh crore in a single day. The total market capitalization of companies listed on BSE came down to around Rs 452 lakh crore from Rs 458.5 lakh crore in the last session. That means, in just a few hours of trading, assets worth lakhs of crores of rupees were wiped out from the market.
Investors alerted
Experts believe that FII selling, ongoing global tensions, dollar strength and domestic uncertainty regarding budget and corporate results have put pressure on the market. Until the global signals are clear and the picture regarding the budget is not clear, the market may remain volatile and investors will remain cautious.
Also read: Shares of the company whose French President wore glasses in Davos rocketed, earning Rs 38 crore in one go.
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