After the sharp fall in the US, a big fall was also seen in the stock market on Friday. Investors’ portfolios closed in the red. There was huge selling in everything from IT sector to real estate sector. Stocks like TCS, Infosys and Reliance had a big role in this huge fall.
On the last trading day of the week, the Sensex fell 1,048 points or 1.25% to close at 82,626. Nifty 50 fell 336 points or 1.30% to close at 25,471. Bank Nifty also saw a big fall of 553 points. The market fell in early trading due to pressure on IT stocks, but gradually all other sectors also came under pressure, leading to large-scale selling.
Out of the top 30 stocks of BSE, except Bajaj Finance and SBI, all 28 stocks closed in the red. Hindustan Unilever, Eternal, Titan, Tata Steel and TCS were the biggest losers, falling around 5% each. Apart from IT, metals, consumer products, real estate, energy, banking and financial services also participated in the decline. This clearly shows that the decline was on a large scale.
Why did the stock market fall so rapidly?
Market experts believe that such a sharp decline in IT stocks is due to the technological disruption caused by AI and the resulting uncertainty over traditional business models. Mayuresh Joshi, head of equity research at William O’Neill India, told Business Today that a major change is taking place in the IT sector. The race to build better AI-based agents and stronger application layers could cause major disruption not only in this sector, but also in its verticals and related end-user industries. I believe a big change is coming. We must just wait and see.
Loss of Rs 7 lakh crore
There was a significant decline in BSE market cap on Friday. On Thursday, BSE market cap was Rs 472.48 lakh crore, which declined by Rs 6.83 lakh crore to Rs 465.31 lakh crore. Meanwhile, according to a report, there has been a loss of about Rs 90 lakh crore in the American market in three days.
