After gains in the first three trading sessions of the week, the country's stock market crashed on Thursday. Despite a positive start, the Sensex and Nifty50 began falling as the day progressed. Small and mid-cap stocks also performed poorly due to the crash. The market lost ₹7.55 lakh crore in a single day due to this decline.
In Thursday's trading session, the Sensex fell 1.47 per cent or 1,236 points. After this decline, the Bombay Stock Exchange index dropped to 82,498 points. Meanwhile, the Nifty50 fell 1.41 per cent or 365 points. This index stands at 25,454 points.
Mid-cap and small-cap stocks crashed on both stock exchanges due to this decline. The BSE 150 Mid Cap Index fell 1.54 per cent. The BSE 250 Small Cap Index dropped 1.16 per cent. Along with this, all sectoral indices on the Nifty also lost points. Nifty Bank fell 1.32 percent and Nifty IT dropped 1.07 per cent. Besides this, the metal, auto, and FMCG sectors also suffered deep losses. The decline in multiple heavyweight stocks from all these sectors created pressure on both benchmark indices.
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Market experts have identified multiple reasons behind Thursday's stock market fall. Profit booking comes first among these. The Sensex and Nifty50 had grown over the past few sessions. A section of investors chose to sell shares to book profits from that growth. This resulted in higher sell-off pressure. The sale of heavyweight stocks increased pressure on both benchmark indices. This led to a decline in Sensex and Nifty50 points.
The market has been volatile over whether the US Federal Reserve will cut interest rates in the coming days. This decision could impact foreign investment inflows into India's market. Experts believe this uncertainty has also created negative sentiment in the market.
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There are no signs of easing geopolitical instability between America and Iran. A recent CNN report stated that America might launch attacks on Iran. Concerns about this situation have also affected the market. Crude oil prices have also risen amid tensions over Iran. WTI crude prices increased 4.60 per cent to $65.19 per barrel. Brent crude prices also rose 4.35 per cent to $70.53. The negative sentiment from rising oil prices is also being considered as one of the reasons for the crash.
{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.}
