Tezzbuzz Desk- The effect of huge pressure in the global market was also visible on the Indian stock market today. Both major indices Sensex and Nifty opened with a decline. Till the time of writing the news, Sensex was trading at the level of 83,674, down by almost 700 points, while Nifty recorded a decline of about 1%.
The global decline in IT sector stocks also shook the Indian market. IT stocks fell by about 5% in the Indian market, adding to the pressure on the overall market. Nearly Rs 10 lakh crore of investors have lost money in the last two days. Last Wednesday, the market cap of BSE was Rs 474 lakh crore, which has now come down to Rs 465 lakh crore.
On Thursday also, Sensex closed at 83,674.92, falling 558.72 points or 0.66% due to profit booking in all sectors and selling in IT stocks. Nifty 50 fell 146.65 points or 0.57% to 25,807.20. In today’s early trading, the Sensex again opened with a fall of almost 700 points.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments, told Mint that the market is currently in a volatile phase, which may cause panic among investors. There was already a possibility of a selloff in AI stocks in the US market, but its timing and extent were not clear. The 2.04% decline in Nasdaq is not considered a crash yet, but if this decline continues, the US market could go further down.
According to Dr. Vijayakumar, the biggest stir in the Indian market at present is due to selling in the IT sector. IT stocks form part of India Inc’s second-largest profit pool. The real impact of anthropic shock on the IT sector is not yet clear. Panic selling may not be the right option for investors at this time, and they would be better off waiting for the market to calm down.
Comments are closed.