New Delhi. Monday was no less than a nightmare for the Indian stock market. Last week on Friday, RBI had cut the repo rate, due to which strength was seen in the market. In view of this, investors were confident that this rise will continue in the new week also. But as soon as the market opened on Monday, the whole atmosphere changed and the market started faltering from the very first minutes. Midcap and smallcap stocks were hardest hit, which recorded a sharp decline.
After day-long fluctuations, the Sensex fell 609.68 points and closed at 85,102.69, i.e. a decline of about 0.71%. Nifty also slipped 225.90 points to close at 25,960.55, which is a weakness of about 0.86%. At one point during the trading session, the Sensex fell by more than 800 points. At the same time, Nifty closing below 26,000 is being considered a negative signal for the market.
Some kind of pressure was seen in every sector. Investors close to full day’s decline Rs 7.5 lakh crore get drowned. Retail investors were hurt the most as the BSE Midcap Index fell by 1.73% and the BSE Smallcap Index fell by 2.20%.
The total market cap of companies listed on BSE fell from Rs 470.96 lakh crore on Friday to Rs 463.65 lakh crore on Monday. That means in just one day the total market cap increased by almost Rs 7.31 lakh crore There was a loss of.
If we look at sector-wise performance, defence, real estate, capital goods, utility and industrial shares were the weakest. Heavy selling in these sectors pushed the index further down.
Now the question is, what was the real reason for the decline? The biggest reason for this is the continuous selling by foreign investors, which has been going on for the last several months. Apart from this, there is uncertainty among investors regarding the policy of the US Federal Reserve coming on Wednesday this week. Rupee also showed weakness against the dollar and it slipped by 16 paise to close at 90.11, which further worsened the situation.
Talking about the stock-level, IndiGo shares fell 8.62% to close at Rs 4,907.50, reducing its market cap to Rs 1.90 lakh crore. Whereas BEL closed down by about 5%, JSW Steel by 4% and HAL by 3.61%.
The market itself started in the red zone. The Sensex opened lower at 85,624.84 compared to the previous close of 85,712.37 and then continued slipping throughout the day.
(Disclaimer: Before investing in the stock market, please consult your financial advisor.)
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