Indian stock market crashed investors lost rs 17 5 lakh crore know reasons

New Delhi. Stock market Crash: Indian stock market fell on Monday. While the decline had continued for the last 4 sessions, the recession hit the first trading day of the week, December 24. The whole market of investors resembled such a stampede was shaken. Neither the new companies could survive this massive recession nor the old ones remained untouched.

Amid weak global signals, both the BSE and NSE on Monday were open with the same index declines. Today Sensex closed at 1545.67 points i.e. 2.62% fall at 57,491.51 while Nifty closed at 468.05 points i.e. 2.66% level at 17,149.10.

Investors immersed Rs 17.5 lakh crore

The massive sell-off of these 5 days has cost investors around Rs 17.54 crore. Since January 17th, the Nifty has broken 1,100 points i.e. 5.4 per cent. At the same time, the Sensex has broken more than 3,300 points. Every sectoral index is closed in the red mark today. The realty, metal, IT index saw the most decline in today’s business.

Why Machiavellian

Since the beginning of the new year, the Indian stock market was riding on a boom. Investors were shocked by the continued decline over the four seasons, but today’s steep decline has astounded them. Market experts consider the selling in global markets to be the major reason for the sharp decline in stocks of new tech companies. He believes that investors had invested heavily in these companies, but these companies have not been able to live up to their trust so far.

 

The impact of the global market

The US Federal Reserve’s prospects for raising interest rates have fueled the sell-off in global markets. The next meeting of the US Federal Reserve is scheduled for January 25-26. Experts say that due to rising inflation, this policy will come in stricter. The week ended January 21 has been the worst week ever for US stock indices. The rise in interest rates show overtaking the ghost market. Investors sold out fiercely.

Tech stock by duboi lutya

Over the past few months, new-age technology stocks listed on the stock market have seen a strong decline. The new technology stocks listed in the market have been steadily underperforming over the last few months at a high valuation. Retail and high-net worth investors have invested heavily in these stocks, but they are not performing as they expected. The entire world, especially the tech sector in the U.S., is under enormous pressure.

 

In India ,the shares of tech companies like Paytm’s parent company One97 Communications, Swiggy and Fino Payments Bank have slipped from their listing price by 10 to 50 per cent. Zomato and Nayaka’s parent company FSN have broken 21 per cent of their highs after the e-commerce listing. A sharp decline in these companies has broken the morale of the market.

Growing cases of covid – 19

Covid-19 cases in India have consistently stood above 3 lakhs. This is because of too heavy uncertainty in the market. New restrictions are announced every day somewhere in the country. Health experts have not yet been able to predict the peak of the third wave. This makes investors confused. This confusion is also fueling the sell-off.

 

Inflation hit

Third quarter results are clear that companies are raising production costs. The prices of all raw materials, including crude oil, are climbing day by day. The rise in prices for crude oil and other crude goods in the quarter is likely to put pressure on the margins of the companies. Even though the earnings of companies have been around the estimates in the December quarter, inflation has affected the profit margin.

Non-growth of demand

Even during the festive season, the market demand was not expected. Rising inflation and unseasonal rains adversely affected the harvesting of kharif crop. Covid also hitched it. Because of this, demand did not catch up.

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