India’s Benchmark Equity Index BSE Sensex and Nifty-50 closed on Monday, 4 June 2024 on Monday, 4 June 2024, due to a decline in global markets amid fears of increasing global trade war. The 30 -share BSE Sensex opened nearly 4000 points to open at 71,449.94 today. The index during trading fell to 71,425.01 points. Finally, the Sensex closed down 2226.79 points or 2.95% to close at 73,137.90. Similarly, the Nifty-50 of the National Stock Exchange (NSE) also opened at 21,758.40 with a decline of more than 1000 points. The index fell to 21,743.65 points during day trading. Finally it closed at 22,161.60 with a decline of 742.85 points or 3.24%.
Investors lost ₹ 13 lakh crore
On Monday, investors have suffered heavy losses due to the major fall in the Indian stock market. The market capitalization of companies listed in BSE decreased to Rs 3,90,70,081.92 lakh crore. It was Rs 404,09,600 lakh crore on Friday. In this way, the wealth of investors today declined by Rs 13,39,519 crore.
Today the reason for the decline in the stock market?
1. US President Donald Trump has imposed 54 percent tariff on China’s exports. In response, Beijing imposed 34 percent tariff on all American imports.
2. Analysts believe that tariff policy may increase inflation in the US. This will weaken the demand and increase the risk of recession. Bernstein said that these duties are very important and about 60 percent of the affected imports will now be charged more than 20 percent.
3. After the global trade war has reached the peak of the stress, the boom in the purchase of Indian shares by global funds has reversed. Foreign institutional investors (FIIs) have been pure sellers in the last five trading sessions. As a result, 1.5 trillion rupees have been an outflow this year. Meanwhile, domestic institutional investors bought shares worth ₹ 1.93 lakh crore.
How was the market on Friday?
Earlier in Friday, the Sensex fell at 930.67 points or 1.22% to close at 75,364.69. At the same time, the Nifty 50 lost 345.65 points to close at 22,904.45 with a decline of 1.49 per cent.
The last biggest decline was on 4 June 2024
The Indian stock market saw a major decline on 4 June on the day of Lok Sabha elections. The benchmark index declined by more than 5 percent that day. The Sensex fell at 4,389.73 points or 5.74 percent to 72,079.05 and the Nifty fell 1,379.40 points or 5.93 percent to close at 21,884.50. Indian stock markets reached record high after predicting BJP’s huge victory in most exit polls. However, on June 4, the stock market declined drastically on the day of results, when it became clear that the BJP was not going to get a majority on its own.
