This Rs. Damage of 7 lakh crores; What are the causes of this unexpected collapse?
The Indian stock market suffered a strong loss in all departments on Thursday, June 12. Sensex fell nearly 1,000 points and fell to 24,850. Sensex opened at 82,515.14 points, 992 points or 1.2 percent, one intraday decreased at 81,523.16. The Nifty was below 25,164.45 and declined by 1.3 % to 24,825.90. Sensex ended at the end at 823 points at 81,691.98 and the Nifty closed at 24,888.20 with a loss of 253 points or 1.01 %. BS’s MID -CAP indices declined by 1.52 percent and small CAP indices fell by 1.38 percent respectively.
Rupee. 7 lakh crore damage
Investors lost about Rs 7 lakh crore in the same session, as the total market capitalization of BSE fell from Rs 456 lakh crore to Rs 449 lakh crore in the last session.
5 reasons for stock market collapse
Why did the Indian stock market collapse today? Experts believe that the following five elements are behind this unprecedented decline in the Indian stock market.
Geographical political stress
Increasing stress in the Middle East has affected markets around the world. Major Asian and European markets suffered significant losses in the session, with signs of tension between the US and Iran. The US State Ministry and the Army said on Wednesday that the US was withdrawing non -resistant employees from the Middle East due to regional tension due to nuclear dialogue. There has been speculation that Iran will attack the Iran nuclear program on the strength of Israel. US President Donald Trump has reiterated that Iran is not going to be nuclear.
American China Trade Agreement
The US-China trade agreement failed to increase the market spirit. Trump on Wednesday announced that China supplies rare minerals and magnets to the US and the US government would allow Chinese students to US universities. However, Trump and Chinese Foreign Minister have so far come on consensus on the deal. “Our agreement with China will be subject to the final approval of the President Jin Ping. Full magnet, essential rare earth minerals, will be pre -surrendered by China. Similarly, we will provide China to China (which is always good with me!). We have 55 percent and 10 percent tariffs for China. There are reports that America and China are likely to reach an agreement. But the Chinese has not confirmed.
Concern on economic development
The concern of economic recession in the US is worried about Trump tariff policies. The World Bank on Tuesday warned that American tariff policies would cause a slowdown in the US and global economies. The World Bank has revised its economic development forecasts, now 2.3 % in 2025 (0.4 percent less than January), 2.4 percent in 2026 (0.3 percent less) and 2.6 percent in 2027. On the other hand, the tariff crisis is not yet over. President Trump has announced that he will send a letter to commercial partners in the next two weeks to determine the universal tariff.
Fed rate erosion
Experts believe that the US Federal Reserve will not announce any rate cut in the June policy meeting due to the ongoing uncertainty on the US tariff policy. Tariff -Concern of concerned uncertainty will delay interest rates in the US, which is damaging the market spirit. Sales have increased with a combination of international and domestic issues. Stockxart director and CEO Prana Aggarwal said, “Weak international signs, especially American inflation figures, and the possibility of delay in Federal Reserve Interest Rates have been severely damaged.”
Extended evaluation, profit booking
Evaluation in the Indian stock market is one of the main reasons for domestic retail and stopping profit booking for foreign investors. Experts believe that the Nifty 50 Current P/This ratio is at 22.60, an average of 22.19 per year, and six -Montha high is close to 22.80. Due to lack of new positive trigger in the domestic market, extended price is inciting vigilance in investors.
Comment: The above opinion and recommendations are individual analysts or broking companies. HT Telugu V is not. We recommend investors to check certified professionals before taking any investment decisions.
