Due to the stock market crash, 5.48 lakh crore investors were wiped out from the market.
The stock market fell for the third consecutive day. Sensex has seen a drop of over 1400 during this period. According to experts, the US is going through an economic crisis. The numbers are not improving. Due to this, there is a fall in the markets across the world. Be it the recent employment data or the manufacturing numbers that were released a few days ago or the doubt over the possible tapering by the Federal Reserve, these are all the factors due to which the stock market is witnessing a fall.
On the other hand, the fall of the rupee is also an important reason. Foreign investors are continuously withdrawing money from the stock market. On the other hand, the overvaluation of the stock market is also an important reason for profit booking. Due to all these reasons, stock market investors lost Rs 5.48 lakh crore on Friday. We also tell you what kind of figures were seen in the stock market on Friday.
Big fall in Sensex and Nifty
Bombay Stock Exchange’s main index Sensex closed at 81,183.93 points with a massive drop of 1,017.23 points or 1.24 per cent. This is the lowest closing level in two weeks. At one point during trading, the Sensex had fallen by 1,219.23 points to 80,981.93 points. At the same time, the main index of the National Stock Exchange Nifty fell by 292.95 points or 1.17 per cent to 24,852.15 points. This was the third consecutive session of decline in Nifty.
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Among the 30 Sensex companies, State Bank of India (SBI) registered the maximum fall of four per cent. Besides this, there were losses in the shares of NTPC, ICICI Bank, HCL Technologies, Reliance Industries, Axis Bank and ITC. On the other hand, shares of Bajaj Finance, Asian Paints, JSW Steel and Maruti Suzuki closed with gains.
What the experts say
Vinod Nair, head of research at Geojit Financial Services, said there was nervousness in the domestic market due to the SEBI deadline on FII disclosure standards. However, this is not likely to have any impact on the attraction towards India among FIIs in the long term. Nair said the market is expected to continue a passive trend in the near term due to high valuations and absence of any fresh bullish factors. Global markets are also adopting a cautious stance ahead of the US non-farm payrolls data.
Banking and energy sectors suffered the most in this sell-off phase. Broader indices also witnessed declines, with each losing more than one per cent. Ajit Mishra, Senior Vice President, Religare Broking Limited, said that the recent weakness in the US markets has slowed down the pace of Indian markets. Due to this, market participants have become cautious about the employment data.
The global market also fell
Elsewhere in Asia, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng also fell. Most European markets traded lower during the afternoon session. Most American markets closed in the negative territory on Thursday. According to stock exchange data, foreign institutional investors (FIIs) made a net sale of shares worth Rs 688.69 crore on Thursday. Meanwhile, global oil benchmark Brent crude rose 0.14 per cent to $72.79 per barrel.
Big loss for market investors
The massive fall in the stock market had an impact on the market capitalisation of BSE-listed companies and it declined from Rs 5,49,925.16 crore to Rs 4,60,18,976.09 crore (Rs 5.48 lakh crore). A day ago, the market capitalisation of BSE was Rs 4,65,54,886.40 crore. This is the loss of market investors. When there is an increase in the market capitalisation of BSE, stock market investors get benefited. Market investors have to face losses when the market capitalisation of BSE falls.
