MUMBAI: Investors in the Indian stock market are not taking the name of ending bad days. The last few months of this year have been tough after last year’s boom. Investors are feeling the pinch if the stock market rises one day and falls sharply the next. Today is Thursday. Even on May 12, 2022, the stock market witnessed a tremendous 1400-point crash, which is estimated to have cost investors more than Rs 5 lakh crore.
Stock markets around the world have been in a correction for the past few months, following last year’s sharp rise. Sales have risen, especially since the start of the interest rate hike period due to record inflation. Both the BSE Sensex and the NSE Nifty are down more than 2-2 per cent in Thursday’s trading. This has caused a loss of over Rs 5 lakh crore in a single stroke in the investor market.
The stock market plummeted in one month
Today, only 2 of the 30 Sensex companies, Wipro and HCL, managed to stay in the tech green zone. The Sensex fell by 1400 points at one point during trading. At the close of trading, the Sensex had lost 1158.08 points (2.14 per cent) to close at 52930.31 points. Similarly, the NSE Nifty closed at 15808 points, down 359.10 points (2.22 per cent). The Sensex has broken 5500 points in the last one month. The Nifty has also declined by about 10 per cent in the last one month.
These four factors are responsible for the decline in the stock market
Experts believe that global factors are responsible for the decline in the stock market. The market is down today due to factors including rising US inflation and weak rupee. Let us know about the four reasons that caused the earthquake in the market.
Inflation in America: The latest inflation figures in the US have been released. Accordingly, retail inflation in April fell to 8.3 per cent from 8.5 per cent in March. However, this estimate is higher than 8.1 percent. With inflation soaring, fears are mounting that the Federal Reserve may take an aggressive approach to raising rates. Which is why frightened investors are selling.
Strong dollar, Weak rupee: US currency dollar is strengthening. At present, the dollar index has risen to 103.92 in a basket of six major currencies. This is the highest level of the dollar in almost two decades. This record fast dollar market is seeing volatility in the dollar. The Indian rupee hit an all-time low against the dollar this week. This is having an adverse effect on stock market sentiment.
Weak global signals: Yesterday saw a decline in the US market. The Dow Jones Industrial Average was down 326.63 points, or 1.02 percent. The S&P 500 fell 1.65 percent and the Nasdaq Composite Index fell 3.18 percent. After this, Asian markets were also at a loss today. Japan’s Nikkei was down 1.01 percent, Hong Kong’s Hang Seng was down 1.05 percent and South Korea’s Kospi was down 0.36 percent.
Foreign Investors Cell of (FPI Cell of): Foreign portfolio investors have been selling in the Indian market for the past few months. According to preliminary data, FPIs rose to Rs. 3609.35 crore. Thus far in May, FPIs have withdrawn Rs 17,403 crore from the Indian market. So far this year, FPIs have risen to Rs. 144565 crore.
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