Many states have imposed lockdowns, curfews and other restrictions amid uncontrollable conditions due to the Corona virus epidemic. This has deepened the possibility of economic activities coming to a standstill. Due to this situation, the market is in panic, due to which there was a lot of upheaval in the stock market and the market closed in red.
After the day’s ups and downs, the BSE Sensex plunged 1.81%, ie 882.61 points, to 47,949.42 and the NSE Nifty dipped 1.77%, ie 258.40 points to close at 14,359.45 points. Investors lost Rs 3.54 lakh crore today due to all-round selling.
On Monday, all sectors except Nifty Pharma Index witnessed heavy selling pressure. The Nifty PSU Bank and Realty index saw a decline of over 4%. Auto, media and private bank indices also declined by about 3%.
Stock market hit due to these 4 reasons
Corona Virus Growing Cases
Corona virus epidemic has caused outrage all over the world including India. In India, the second wave of Covid has created more terror than the first wave. At the same time, the covid recovery rate in the country has also come down. Many states are considering imposing a lockdown, which led to a huge drop in the stock market today.
Market experts expected companies to have a significant increase in earnings in Q4, just like Q3. But so far the earnings of the companies which have declared their March quarter results have increased, but much less than expected. Due to this also the stock market has seen a downward trend.
Experts expected earnings growth to be strong in FY21 and FY22 and could remain at 30%. Because of this, the market bull had been riding in the last few months. But now fear of Corona’s new restrictions may bring further correction in the market.
Foreign portfolio investment outflows in April have been the highest since September 2020. So far this month, FPIs have pulled out 4615 crore rupees from the foreign share market. It also has an impact on the market.
Corona is likely to decline the GDP growth rate once again due to rising cases. Previously for FY22 almost all rating agencies had estimated India’s GDP growth rate to be above 11%, but now brokerage firms have downgraded it to 10%.
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