Sensex falls 2,227 points .. 5 major reasons
The Indian stock market suffered heavy losses on Monday, 7 April, which reflects trends in major markets around the world in view of increasing apprehensions on the influence of global trade war.
Sensex fell nearly 4,000 points at the beginning of the market. The Nifty fell below 21,750 in the morning.
Finally, Sensex fell 2,227 points or 2.95 percent to close at 73,137.90. The Nifty fell 743 points or 3.24 percent to close at 22,161.60. The BSE midcap and smallcap index ended with losses of 3.46 percent and 4.13 percent respectively.
The volatility index India Vicks rose 66 % to 22.8. It represents the most anxiety in the market.
The Nifty Bank lost 3.19 % in Sector -Wise Indicators. The financial services index declined by 3.49 %.
The metal declined by 6.75 %. Realty shares fell 5.69 %. The media index fell 3.94 %. Auto declined by 3.78 %. Private bank index fell 3.47 %. The PSU bank index declined by 2.84 %. Pharma fell 2.75 %. The IT index fell 2.51 %.
The total market capitalization of companies listed in BSE is almost Rs. 12 lakh crores. In the last session, Rs. 403 lakh crores 391 lakh crores. In Intrade Trading in BSE, 775 shares hit the minimum of their 52-week.
Why did the stock market fall today?
Here are the five major reasons for blood floods in the Indian stock market:
1. Worldwide sale
Almost every major market around the world has declined deeply as the Trump government has not shown signs to withdraw signals from its tariff schemes.
According to the Reuters report, Trump called Tariff as a “medicine” on Sunday. He said that he was not worried about the loss in world stock markets.
Reuters Trump quoted words as saying, “What I don’t want to do. Sometimes you have to take medicine to do anything right.”
Heavy losses in Asia, Europe and American markets. During the trading on Monday, the burden of renovation in Asia fell 10 percent. Nikki fell 7 percent.
The S&P 500 index fell 5.97 % on Friday. Dow Jones ended with a loss of 5.50 %. Tech-Havi Nasdock fell 5.73 %. Weakness in the world stock market has a great impact on the domestic stock market.
2. Tariff effect
The Trump government has adopted a difficult attitude towards the broad tariffs imposed on more than 180 countries. It has given rise to market concerns. Experts believe that in the first quarter of the current financial year, in terms of Indian markets, and decreased.
3. Fear of recession of development
Market experts estimate that tariffs will increase inflation and reduce corporate profitability. As if economic development is affected.
After Trump’s response, tariffs were imposed on April 2, as well as vengeance with 34 percent of China’s US goods, was worried that the major trade war would harm the global economy.
In terms of world recession, JP Morgan has increased opportunities in the past from 40 percent to 60 percent.
4. Foreign investor (FPI) sales
Foreign investors who became buyers in Indian stock markets last month and started selling again this April.
Uncertainty in global economy on the impact of Trump tariff, until Friday this month He sold Indian shares worth Rs 13,730 crore.
If India cannot make a positive agreement with the Trump government, the return of foreign investment is likely to increase.
5. RBI Monetary Policy Committee (MPC) Decision, Q4 Income Focus on Income:
On 9 April, the Reserve Bank of India (RBI) has taken some precautions.
Under current circumstances, expectations are increasing that the central bank will reduce interest rates and take additional measures to support development.
Q4 Revenue is starting this week. TCS will announce a quarterly results on 10 April.
