Market meltdown: ₹8 lakh crore wiped off, here's what triggered the sell-off
Mumbai (The Uttam Hindu) : Indian stock markets closed in the red on Monday's trading session. Selling was widespread across the board. The Sensex was down 609.68 points, or 0.71 percent, at 85,102.69, and the Nifty was down 225.90 points, or 0.86 percent, at 25,960.55.
Almost all the indices closed in the red. Nifty India Defence (3.68 per cent), Nifty Realty (3.53 per cent), Nifty PSU Bank (2.81 per cent), Nifty Media (2.73 per cent), Nifty PSE (2.10 per cent) and Nifty Metal (1.92 per cent) were the top losers in the Sensex pack. BEL, Eternal (Zomato), Trent, Tata Steel, Bajaj Finance, Bajaj Finserv, Power Grid, SBI, Tata Motors Passenger Vehicles, Asian Paints, Kotak Mahindra, Titan, NTPC, Bharti Airtel and L&T were the top losers. Tech Mahindra and HCL Tech were the gainers.
Investors have suffered a loss of Rs 8 lakh crore
Due to this fall in the stock market, investors have also suffered a huge loss. The loss of investors depends on the market cap of BSE. If we look at the data, when the stock market was closed on Friday, the market cap of BSE was Rs 4,70,96,826.75 crore. Which came down to Rs 4,63,01,207.86 crore during the trading session on Monday. This means that the market cap of BSE has suffered a loss of Rs 7,95,618.89 crore.
Why did the stock market fall?
Market experts say that there were 5 major reasons behind today's fall in the stock market. First, the sentiment of the stock market weakened due to continuous selling by foreign investors. Second, investors were seen avoiding risk even before the policy results of the US Federal Reserve on Wednesday. Third, the Indian rupee continues to weaken. On Monday, the rupee fell by 16 paise to 90.11 per dollar. Fourth, the price of Brent crude oil rose by 0.13% in the international market on Monday to reach 63.83 dollars per barrel. Fifth, India VIX rose by 2.11% to reach 10.53 on Monday.
Midcap and smallcap stocks saw more selling than largecaps. The Nifty Midcap 100 index was up 1,106.50 points, or 1.83 percent, at 59,488.10, and the Nifty Smallcap 100 index was down 456.10 points, or 2.61 percent, at 17,051.65. On the Bombay Stock Exchange (BSE), 950 shares were in the green; 3,348 were in the red; and 187 remained unchanged.
Market experts said that despite the strong performance of the Indian economy, the stock market witnessed a decline. This is because global signals dominated the market. In the coming time, investors will be looking at the results of the US Fed. This will decide the direction of the market. The Indian stock market started in the red. At 9:34 am, the Sensex was at 85,580.57 after falling by 131.80 points or 0.15 percent and the Nifty was at 26,141.90 after falling by 44.55 points or 0.17 percent.