The stock market has seen a strong decline in the last one week. In just 5 days, the valuation of investors declined by 16 lakh crores. On Friday, there was a decrease of about Rs 7 lakh crore, which was the biggest decline during the entire week. The Sensex fell 733.22 points to 80,426.46 on the last trading day of the week, while Nifty fell 236.15 points to close at 24,654.70.
At the same time, the Sensex has fallen 2,097.63 points or 2.54% and Nifty 631.80 points or 2.50% during 1 week. Bank Nifty has also seen a huge decline. In this week, the market has closed at the lower level in every session. The market cap of listed companies on BSE has reduced by Rs 16 lakh crore during this period. Let’s know what are the reasons behind this.
Why did the market fall?
- At the beginning of the week, the direct impact of America’s H-1B visa was seen in India’s equity market. On Monday, the shares of Indian IT companies saw a decline due to visa fees, due to which the IT sector was on a whole week. TCS shares have come below 2900.
- Since Monday, there has been a big fall in the rupee compared to the dollar. The rupee is trading around 88 against the dollar.
- Due to global tension, the price of raw oil is also seeing a boom. WTI Crude Oil is at $ 65.72 per barrel, while brand crude oil has crossed $ 70 per barrel.
- Foreign investors are continuously selling from the stock market. On Friday, foreign investors sold shares worth 16,057.38 crore from the Indian market, while domestic investors also removed 11,464.79 crore shares.
- On Thursday, Trump put a tariff of 100 per cent on pharma, 50 per cent on furniture and 25 per cent on the import of heavy trucks. Its wide impact has appeared on the Indian stock market.
- Largecap stocks had handled the market for some time, but now the selling has also dominated it. Due to which the Indian market was under pressure throughout the week.
- The earnings of companies are also coming from next month. It is estimated that due to tariffs and other foreign policies, the results of these companies will appear.
- The Federal Reserve Bank has made a cut once, after which investors were expecting another cut, but Jem Powell has refused to cut the rate. The effect of this is also visible as a decline in the stock market.
What will happen to Mande in the market?
Asian market is under pressure due to weak support from foreigners. Also, the strength of gold is also causing tension in the stock market. Business relations with America are not yet clear. Foreign investors are also focus on selling. The Indian market is dependent only and only on the domestic market. In such a situation, what will happen in the market on Monday? It is difficult to decide, but the expert says that a support is needed to boom in the market.
(Note- Be sure to help your financial advisor before investing in any share.)
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