In the last trading of the month, a huge drop was observed in the Indian stock market. Both Sensex and Nifty closed down one and a half percent. Due to which stock market investors suffered a loss of Rs 3.57 lakh crore. China is considered to be the real reason for the stock market crash. There is a reason for that too. China has made many announcements to boost its economy. On the other hand, the valuation of the Chinese stock market is very low, which has taken advantage of the fact that foreign investors have turned to Shanghai. The effect of which has been seen in the stock market.
On the other hand, the tension between Israel and the Middle East was also clearly seen in the stock market. Geopolitical tension has reached its peak following confirmation of the Hizbul chief’s death on Saturday. So we are also seeing a decline in the stock market. On the other hand, there is some nervousness in the stock market before the speech of the American central president, Jerome Powell. Furthermore, the country’s largest company, Reliance Industries, has seen a decline of more than 3 percent. Due to which the market capitalization of the company has fallen below Rs 20 lakh crore. Let us also tell you what kind of figures are being seen in the stock market. What are the main reasons for the market decline?
the stock market crashed
On the last trading day of the month i.e. September 30, a huge drop was recorded in the stock market. The main index of the Bombay Stock Exchange, Sensex, closed at 84,299.78 points with a fall of one and a half percent or 1,272.07 points. However, during the trading session, Sensex also hit the lowest level of the day at 84,257.14 points. On the other hand, the main index of the National Stock Exchange Nifty closed at 25,810.85 points with a fall of 1.41 percent or 368.10 points. While during the trading session it also reached the lower level of 25,794.10 points.
read this too
What stocks experienced a drop?
If we talk about declining stocks, Hero Motors shares have seen a drop of 4 percent. While Axis Bank and Trent shares have seen a drop of more than 3 percent. Shares of the country’s largest company, Reliance Industries, closed down 3.13 per cent. At the same time, BEL shares are down 3 percent. If we talk about value rises, JSW Steel shares have risen by 2.93 percent. On the other hand, NTPC shares closed up 1.37 per cent. Shares of Hindalco and Britannia closed up more than one per cent. Shares of Tata Steel have seen an increase of 0.84 per cent.
How much loss did investors suffer?
Due to this stock market crash, investors have also suffered huge losses. Investors’ losses are linked to the market capitalization of the BSE. If we look at the figures, the market capitalization of BSE was considered to be Rs 4,74,35,137.15 crore. While a day earlier, the market capitalization of BSE stood at Rs 4,77,93,022.68 crore. This means that more than 19 million investors in the stock market have suffered a loss of Rs 3.57 lakh crore.
Attitude of foreign investors in the Chinese stock market
The Chinese government has taken many measures to boost the country’s economy. So FIIs have focused their attention on the Chinese market. Therefore, the blue-chip CSI300 index rose 3 percent, while the Shanghai Composite saw a rise of 4.4 percent. In addition, the Central Bank of China has also announced low interest rates for existing mortgage loans. So investor confidence has increased. In the month of September, Hong Kong’s main index saw an increase of 18 per cent, with the largest contribution coming from FIIs.
geopolitical tension
The second major reason for the stock market crash is geopolitical tension. Israel’s attacks on Lebanon have left no stone unturned to ruin global market sentiment. However, the supply of crude oil has increased. So there hasn’t been much price increase. But due to the ongoing conflict in the Middle East, concerns about energy supplies have increased. Rising crude oil prices, with Brent crude oil futures up 0.71% and US West Texas Intermediate up 0.63%, further dented market sentiment, increasing pressure on Indian stock markets due to India’s dependence on oil imports.
Nervousness over US data and Powell’s speech
US Federal Reserve Chairman Jerome Powell’s speech will begin on Monday. On the other hand, US data will also be released this week which will affect stock market sentiment. Stock markets closely follow every step of monetary policy. On the other hand, along with job offers, private contracting figures and the manufacturing industry, data from the services sector will also arrive. At the same time, the week’s latest US payroll data will also be revealed, which may influence the Federal Reserve’s policy meeting with the stock market in November. Recent data shows there has been a slight increase in consumer spending and inflationary pressure has eased, raising expectations of a big rate cut at the next Federal Reserve meeting. At the meeting scheduled for November 7, the Federal Reserve may reduce the interest rate again by 0.50 percent.
FII sold shares
Foreign institutional investors (IFIs) have now become net sellers. It sold shares worth Rs 1,209 crore on September 27. Despite this, investment from foreign investors crossed Rs 57 billion in September. VK Vijayakumar said in a media report that FIIs can continue selling in India and transfer more money to better performing markets. However, this sale is unlikely to have a significant impact on the Indian market as the largely domestic money can easily absorb whatever the FIIs sell.
