Stock market: stock market towards underworld; On the same day, Rs. 10 lakh crores steam
Stock Market Crash: The Indian stock market collapsed on Tuesday. Sensex lost more than 12 hundred points and the Nifty lost more than 400 points. In the last five sessions, the sensex lost about 2500 points. The dollar of domestic currency has been kept under pressure at a lower level than the sale of foreign capital in the Indian stock market, weak Q3 revenue, economic growth slow and domestic currency dollars.
Loss of 2500 points in five sessions
In the last five days, the market benchmark sense fell to 2,500 points. The Nifty was reduced to 50 23,000. On Tuesday, February 11, Sensex opened at 77,384.98, compared to its previous finish 77,311.80. However, the session fell 1,281 points to 76,030.59. The Nifty 50 was opened at 23,383.55, which fell to about 400 points or 1.7 percent to 22,986.65 at the end of the last 23,381.60. After overcoming the benchmark, the BSE midcap and smallcap index fell over 3 percent of the session. In the last five sessions, the sensex fell 2,553 points, with Tuesday’s loss. The Nifty lost 50 753 points or 3.2 percent.
Finally on 4 February ..
Sensex was last run on February. Then the total market capitalization of companies listed on BSE is almost Rs. 426 lakh crores. Till Tuesday, it is almost Rs. 408 lakh crores. That is, in the last five days, investors were almost Rs. 18 lakh quotes are lost. At 2:15 pm, the sensex fell at 1,082 points or 1.40 percent to 76,230, while the Nifty fell 345 points or 1.48 percent to 23,036.
Why is the Indian stock market falling?
According to experts, there are five major causes of stock market collapse. Let us consider them.
1. Huge FPI sales
Foreign investors have been selling Indian stocks since last October due to increase in profits on US bonds, strengthening the dollar and soon decreased Fed rate. By 10 February, Rs. Foreign Institutional Investors (FII) in the cash department of. Indian stock worth 12,643 crore. Since October, he was Rs. More than 2.75 lakh crores.
2. Weak Q3 Returns
Indian companies (Q3) The December quarter of revenue is slightly better than the previous two quarters, but they have failed to meet expectations, and many shares are moving beyond their original principles. Q3 Returns are slightly better than the previous two quarters. However, the valuation remains disappointing compared to the suggested predictions. The Marselus Investment Managers co -founder Pramod Balli said that consumers staples, autos and building materials are optimistic and special chemicals are recovering.
3. Rupee weakness
One of the main reasons for the market’s negative spirit is the weakening of the rupee compared to the US dollar. The domestic currency price with the dollar rose to 88 on Monday, compared to the dollar, the rupee fell by about 3 percent this year. In early trade on Tuesday, the rupee remained closed at 61 money at 86.84 in early trade amid speculation in the rupee’s Reserve Bank.
4. High evaluation
Experts believe that despite the recent reforms, the Indian stock market is still expensive, with weak income collection expectations. The balli said that prices were increasing and returns were no longer recovered. The continuous sales of FII in the large cap have reduced their versions. Mids and small cap values remain more. Evaluation Guru Ashwat Damodaran believes that the Indian stock market is the most expensive equity market in the world and no matter how ‘Handwing’ is done, it cannot be appropriate to evaluate.
5. Fear of trade war
US President Donald Trump has announced several tariffs on trade partnership countries. It has turned into a broader trade war that disrupts global economic growth and increases inflation and increases market concerns. Trump has imposed a 25 percent tariff on steel and aluminum imports, expecting a major impact on Canada and Mexico. Uncertainty on American tariffs and their impact on global economic growth has been cautious on risk equity.
Reference: The above opinions and recommendations are individual analysts, experts and brokerage organizations. HT Telugu V is not. We recommend investors to contact certified professionals before making any investment decisions.
