Market breaks for 5th day in a row, Sensex falls by 1145 points, investors lose 3.91 lakh crore

Sensex today: The stock market began to decline from February 16, which is continuing continuously. For the first time in three weeks, the Sensex has come under 50 thousand.

Market breaks for 5th day in a row, Sensex falls by 1145 points, investors lose 3.91 lakh crore

Sensex reaches below 50 thousand.

Sensex today: On the first day of the week and for the fifth consecutive day the stock market has recorded a huge decline. Today, the 30-share index Sensex closed down 1145 points (-2.25%) at 49,744 levels and the 50-share index Nifty closed down 306 points (-2.04%) at 14675. The stock market began to decline from February 16, which continues continuously. For the first time in three weeks, the Sensex has come under 50 thousand.

In the Sensex top-30, only three stocks saw a rise, while 27 stocks closed down. ONGC, Kotak Mahindra Bank and HDFC Bank stocks rose marginally. At the same time, the shares of Dr Reddy, Mahindra & Mahindra, Tech Mahindra, Axis Bank, IndusInd Bank and TCS were the biggest losers. The market cap of BSE listed companies has now come down to Rs 200.09 lakh crore. It was Rs 203.98 lakh crore last week. In this way, investors lost Rs 3.91 lakh crore today.

Which factors are visible

Regarding the dominating selling in the market, experts say that there are many factories behind it. At this time the market is putting itself in a strong position, due to which there is an immediate decline. In the US, the 10-year bond yield has increased and has reached 1.36 percent. Due to this, there is a possibility of rise in inflation. The Biden administration is moving ahead on a $ 1.9 trillion relief package, which will lead to increased liquidity in the market, which is expected to increase inflation. In some cities of the country, a fresh lockdown has been announced due to increasing cases of corona. Because of this, FPIs have become a little wary.

Last week stock market performance

Due to the fall in the stock market last week, the market capitalization of eight of the 10 most valuable companies in the country decreased by Rs 1.23 lakh crore last week. The BSE Sensex lost 654.54 points or 1.26 per cent in the previous week. Only Reliance Industries (RIL) and State Bank of India (SBI) among the top 10 companies registered gains. The largest decline was in Tata Consultancy Services (TCS) and its market valuation declined by Rs 44,672.14 crore to Rs 11,52,770.11 crore.

Risk of rising inflation

Experts say that the stock market is showing decline due to the sudden rise in global and domestic bond market. Investors are booking profits. This week India’s 10-year bond yield has gained 17 basis points. America’s 10-year bond yield has also increased. When the bond rate or the interest rate on the bond increases, it has a direct effect on the stock market’s boom. If the yield increases, then the stock market will decline, on the other hand, as the yield decreases, the investors are attracted towards the stock market and it accelerates. A rise in yields means that inflation is expected to rise.

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