The stock market has seen a huge decline last week. The evaluation of investors has fallen by ₹ 16 lakh crore in just five days. The decline on Friday was around ₹ 7 lakh crore, which was the biggest decline of the entire week. The Sensex fell 733.22 points to close at 80,426.46, while the Nifty fell 236.15 points to close at 24,654.70.
This week the Sensex has fallen by 2,097.63 points or 2.54%, and the Nifty has declined by 631.80 points or 2.50%. Bank Nifty has also seen a huge decline. The market has closed down with a decline in every session this week. During this period, market capitalization of companies listed in BSE has fallen by ₹ 16 lakh crore. Let’s look at the reasons behind this.
Why did the market decline?
The US H-1B visa had a direct impact on India’s stock market at the beginning of the week. On Monday, the shares of Indian IT companies saw a huge decline due to the visa fee, causing a decline in the IT sector throughout the week. TCS shares have come below 2900.
The rupee has seen a huge decline against the dollar since Monday. The rupee is trading around 88 against the dollar.
Crude oil prices are also increasing due to global stress. WTI crude oil is trading at $ 65.72 per barrel, while Brent crude oil has crossed $ 70 per barrel.
Foreign investors are constantly selling from the stock market. On Friday, foreign investors sold shares worth Rs 16,057.38 crore from the Indian market, while domestic investors also took out shares of Rs 11,464.79 crore.
On Thursday, Trump dropped another tariff bomb, in which he imposed 100% on pharmaceuticals, 50% on furniture and 25% on heavy truck imports. It has a widespread impact on the Indian stock market.
For some time, large-cap of the stock market had remained chawers, but now the selling pressure has also dominated them, due to which the Indian market remained under pressure throughout the week.
Companies have to submit their income report next month. Tariffs and other foreign policies are expected to affect their results.
The Federal Reserve Bank has already cut interest rates once, which expects investors to cut another interest rates, but James Powell has denied the interest rate cuts. Its impact is also visible on the decline in the stock market.
What will happen in the market on Monday?
Asian markets are under pressure due to weak foreign support. In addition, the strength of gold is also causing tension in the stock market. Business relations with the US are still not clear. Foreign investors are also focusing on selling. The Indian market is completely dependent on the domestic market. Therefore, it is difficult to decide what will happen in the market on Monday, but experts say that the market needs support for speed.
