Sensex lost by 600 points; The main causes of this collapse are described experts
The Indian stock market suffered significant losses on Tuesday amid growing concerns over weak international signals, expanding values and foreign capital flows.
Sensex collapse
Sensex opened at 81,373.75 points, hit 800 points or 1 percent in Intrade and Intrade low hit 80,575.09. Later, it closed at 80,737.51 with a loss of 636 points or 0.78 percent. The Nifty was below 24,786.30, below 1 percent in intraday, and then finished at 24,542.15. The mid -CAP and small -CAP index of BS fell 0.52 percent and 0.07 percent respectively.
Rupee. 2.5 lakh crore damage
Investors lost about Rs 2.50 lakh crore in the total market capitalization session of the list of companies listed in BSE, for Rs 443 lakh crore in a session. LKP Securities Senior Technical Analyst Drops Day said that investors are waiting for a decisive comment on the RBI interest rate decision. “Short -Term’s support is 24,500. Falling below this level stimulates the development of small positions. This leads to a rapid decline of 24,000. On the other hand, the Nifty is above 24,500 and can see the recovery of the area of 24,700–24,750 in the near future, ”he explained.
Why is the Indian stock market falling today?
Experts are today highlighting the following five reasons for the collapse of the stock market.
1. High evaluation
The concern of high values in the Indian stock market is increasing. The “Nifty 50 current value-to-Kamai (PE) ratio is more than the average PE year. There is a concern in the market, especially in the broad market. VK Vijaykumar, the main investment of geojit investments, said, but the trend of money flow and retail investors continues to invest in his investment for a long time.
2. American trade policy
The chaotic American trade policy alerts investors from all over the world. Experts say the market hopes that Trump has no assurance of tariff policies and will promote concerns. While China has accused the US of violating its trade agreement, US President Donald Trump has spoken to the Chinese President G. Jin Ping and says he will solve the tension between the two countries.
3. Foreign capital flow
Signs of foreign capital flow are harming the market spirit. Foreign portfolio investors (FPIs) have sold the price of Indian equities around Rs 9,000 crore in the last two seasons as American bond yields and Indian equity have increased. Religara Broking Research SVP Ajit Mishra said weakened international signs, such as foreign wealth, geographical political stress and uncertainty in business agreements are putting pressure on markets.
4. Lack of new trigger
The Q4 results in the domestic market have no new positive trigger between slow, extended values and tariff -related uncertainty. Experts say that India’s ink Q4 EFVI 25 results are very stable, but they have failed to increase the market spirit. Although India’s development perspective is strong, most of it is already in the market. On June 6, the meeting of the RBI Monetary Policy Committee is now focused on everyone. Experts predict the rate of 25 basis points. But as it is most expected, it cannot provide a meaningful incentive to the market spirit.
5. The latest intensity of Russia-Ukraine War
The Russian-Ukraine war has been carried forward after Ukraine weekend attacks at military airports in Russia. VT Markets Global Strategy Operations Lead Ross Max Wel said that the war in Ukraine has been going on for more than three years and markets have a widespread impact on markets and inflation and fuel system have been replaced to accommodate investment and risk.
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