The decline deepened further in the country's stock market. This marks four consecutive trading sessions where both benchmark indices lost points. Since the beginning of this week, the Sensex has dropped nearly 1,600 points. The Nifty50 has fallen by more than 800 points. Due to this continuous decline, the combined market capitalisation of all listed companies on the Bombay Stock Exchange has decreased by 9.19 lakh crore rupees in just four sessions.
Compared to the first three days of this week, the decline on Thursday was even deeper on Dalal Street. Both benchmark indices opened at lower points than the previous closing. As the day progressed, both indices continued to fall. At market close, the Nifty50 dropped by 1.01 per cent or 264 points. The Sensex fell by 0.91 per cent or 780 points. Due to this decline, the Sensex came down to 84,180 points, and the Nifty50 dropped to 25,876 points.
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Along with the Sensex and Nifty50, small-cap and mid-cap indices on both stock exchanges also declined. Both these indices on the Bombay Stock Exchange fell by approximately per cent each. Additionally, sectoral indices also suffered losses. All sectoral indices on Nifty remained in the red on this day. The steepest declines occurred in sectoral indices like Metal, Energy, Oil & Gas, PSU Bank, IT, and Capital Market. Among the sectoral indices on Nifty, the Bank and Defence sectors saw relatively smaller declines.
Market experts have identified multiple reasons behind the continuous decline in the stock market. Primarily, geopolitical instability, uncertainty in global trade, and events like Trump's tariff threats have made the situation more complex.
Trump's Tariff Bill: American senators have introduced a new bill. If this bill becomes law, it will pave the way for imposing tariffs of up to 500 per cent on buyers of Russian oil. This could increase concerns for countries like China, India, and Brazil. India is the second-largest buyer of Russian oil. America has already imposed a 50 per cent tariff burden on Indian goods for purchasing Russian oil. Just a few days ago, US President Trump had indicated an increase in tariffs on Indian goods. This new bill became public on Wednesday night itself. Due to this, the atmosphere of decline in the stock market has become more complex, according to market experts.
Tense Situation in Venezuela: Venezuela's political situation has become unstable due to American military intervention. Plans to control that country's oil reserves are being heard from Trump administration officials. This is making the situation more complex. Its impact is also being felt in the international oil market. On this very day, America has seized a Russian-flagged oil tanker. Due to this, there are concerns that the situation may become even more complex.
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Trade War Concerns: Last year, a trade war situation had developed around Trump's tariff announcements. If America announces a 500 per cent tariff for buying Russian oil, then the trade war situation could deepen further in the coming days. Analysts fear that its impact could also fall on India. Experts believe this factor has also hurt the stock market.
Uncertainty Over Trade Agreement with America: America has not yet signed a trade agreement with India. Both sides have been holding discussions on this since last year. However, due to various conditions and counter-conditions, success has not yet been achieved in this matter. Meanwhile, there are concerns that Trump's tariff threats could become an obstacle in the path of an India-US trade agreement. Dalal Street has not been able to avoid the impact of this uncertainty either.
Additionally, markets in various Asian countries as well as various European countries were also down on Thursday. Its impact was felt on Dalal Street. The decline in the commodity market has also increased pressure on the Sensex and Nifty50. Along with this, even with the new year, foreign investors' tendency to withdraw money from India's market has not subsided. This has increased Dalal Street's bleeding, according to experts.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
