Stock Market Crash: Stock market fell due to rising prices of crude oil, Sensex at 1,690 points, Nifty lost sweat
Mumbai. The two-day rally in local stock markets ended on Friday with BSE Sensex falling 1,690 points while NSE Nifty fell 487 points. The market declined due to a weak trend in global markets and no signs of abatement in conflict in West Asia.
According to traders, crude oil price remaining above $100 per barrel, fall in rupee and continuous selling by foreign institutional investors also weakened the market sentiment. BSE Sensex closed at 73,583.22, falling 1,690.23 points or 2.25 percent.
It had fallen to 1,739.04 points during trading. At the same time, NSE Nifty fell by 486.85 points or 2.09 percent to 22,819.60. Among 30 Sensex companies, Reliance Industries Limited declined the most by 4.55 percent.
Apart from this, shares of InterGlobe Aviation, Bajaj Finance, State Bank of India and HDFC Bank also declined. Whereas Tata Consultancy Services, Bharti Airtel and Power Grid Corporation registered gains. Brent crude, the international oil benchmark, rose 1.72 percent to $109.9 a barrel.
The Indian rupee fell by 86 paise and reached a new record low of 94.82 (temporary) against the US dollar. In other markets in Asia, South Korea’s Kospi and Japan’s Nikkei were in the red, while the Shanghai Composite Index and Hong Kong’s Hang Seng closed with gains. There was a downward trend in the afternoon trading in the major markets of Europe, while the American markets closed with a sharp decline on Thursday.
Geojit Investments Ltd. Vinod Nair, head of research, said that profit-booking was seen after the recent rally. Falling rupee, continuous selling by foreign investors and rising tensions in West Asia have made investors cautious. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 1,805.37 crore on Wednesday, while domestic institutional investors (DIIs) bought shares worth Rs 5,429.78 crore.
Hariprasad K, founder and research analyst at Livelong Wealth, said the market remained under pressure due to falling energy stocks, rising crude oil prices and global uncertainty. It is noteworthy that the stock markets were closed on Thursday due to Ram Navami. Before that on Wednesday, Sensex had closed with a gain of 1,205 points and Nifty with a gain of 394 points.
Comments are closed.