Despite the strength in the global markets, the Indian stock market saw a major decline on Friday (April 25). Investors were cautious due to increasing tension between India and Pakistan and the Nifty-50 and BSE Sensex closed down 0.86% and 0.74% respectively. Earlier on Thursday, the benchmark index Nifty-50 and the Sensex closed down with a decline after a lead of seven consecutive trading sessions.
Pakistan has stopped all business activities with India and warned that any attempt to stop the water flow will be considered to be a war action. This step has been taken after India took diplomatic action against Pakistan for a deadly attack in Kashmir. Thirty -share BSE Sensex opened at 79,830.15 with a slight increase today. After the beginning, it remained in the green zone for some time and then went into the red zone. The Sensex finally closed at 79,212.53 with a decline of 588.90 or 0.74%.
The Nifty-50 of the National Stock Exchange (NSE) also opened with a slight increase. However, after some time it slipped into the red mark. Finally it closed down at 24,039.35 with a decline of 207.35 points or 0.86%.
The reason for the decline in the stock market on Friday 25 April?
1. Benchmark Nifty and Sensex today closed down due to profits in heavyweight, including Axis Bank, Adani Ports, Bajaj Finserv, SBI, Bajaj Finance, Eaterial (Zomato), Tata Motors, M&M, HDFC Bank, Bharti Airtel and L&T, due to profits in heavyweight.
2. After the terrorist attack on tourists in Pahalgam in Jammu and Kashmir, the increasing tension between India and Pakistan also affected the domestic stock markets. Investors are nervous after the central government has taken steps like cancellation of the Shimla Agreement. Analysts believe that tension between India and Pakistan may increase after the Pulwama attack. But there is no possibility of complete war between the two countries at this time.
3. According to UR Bhat, the co-founder and director of Alphaniti Fintech, the market is a little nervous after the incident of Pahalgam. He said that the market has recently gained momentum after the decline due to the possibility of American tariff. But now investors are making profits. Indo-Pakistan is adopting a cautious attitude until the geopolitical situation is clear.
11 lakh crores of investors drowned
Investors suffered a loss of Rs 11 lakh crore due to the possibility of increasing tension between India and Pakistan after the Pahalgam attack. The market capitalization of companies listed in BSE declined to Rs 419,65,902 crore on Friday (April 25). Whereas after the market closed on Thursday, it was Rs 43,042,123 crore. Thus the market cap (MCAP) of companies declined by Rs 10,50,393 crore.
Now what should investors do?
G. Chokalingam, founder and head of Aquinomics Research, said that the recent developments between India and Pakistan will lead to volatility and further decline. Chokalingam said, “Investors should be cautious and keep an eye on the developments. But there is no need to panic at this time. There is no possibility of complete war. But tension between India and Pakistan will increase. The markets are confident. The markets will be able to deal with this situation and as have been seen earlier, they will eventually recover. They will eventually recover. I should purchase a long period of time in investors. I am positive about. “
What are the signs of global markets?
The Asian stock markets saw an increase on the global front. Asian markets saw an edge on Wall Street. American markets accelerated due to increasing expectations of relatively quick cuts in interest rates. Meanwhile, South Korean stocks rose. There are reports that the US may reach the trade agreement by next week. According to the final update, Japan’s Nikkei was up 1.23 percent, while South Korea’s Kospi was 0.63 percent below.
The S&P 500 index increased by 2.03 percent, while Nasdaq Composite and Dow Jones Industrial Average increased by 2.74 percent and 1.23 percent respectively. According to reports, Federal Reserve officials said that if clear evidence is found about the direction of the economy, they can consider cuts in interest rates in early June itself.
How was the market on Thursday?
On Thursday, the BSE Sensex fell 315 points or 0.39 per cent to close at 79,801. While the Nifty fell 50 82.25 points or 0.34 percent to close at 24,246.7. Foreign investors (FIIs) bought shares worth Rs 8,250.53 crore for the seventh consecutive day on Thursday, while DII sold shares worth Rs 534.54 crore.