The bullish trend going on in the stock market for the last three days suddenly stopped today. The ever-rising market suddenly reversed course on Thursday, leaving investors with no time to react. Tremendous fluctuations were seen in the market on the fourth trading day of the week, which had a direct impact on the pockets of common investors. In just a few hours of trading, a large part of investors’ hard-earned money, approximately Rs 2.62 lakh crore, was lost. This happened because the Reserve Bank of India (RBI) is going to announce its monetary policy decisions on Friday, i.e. tomorrow.
Expiry spoiled the game
There were two main reasons for the turmoil in the market today. The first and most important reason is RBI’s decision coming tomorrow. Investors are uncertain about the Central Bank’s stance on interest rates, and due to this fear they pulled out money from the market today. Apart from this, today was also the weekly expiry of Sensex. The market usually sees a lot of volatility on expiry days, and that was the case today too. There was uncertainty in the market since morning, and by the end of the day the selling pressure increased so much that the market closed in the red.
The metal sector suffered the most loss.
Sector wise, the metal sector suffered the most loss today. Heavy selling was seen in metal stocks, causing their Nifty index to fall by more than 1 per cent. It appeared that the responsibility of supporting the market was borne by the public sector banks (PSU banks) and the healthcare sector. Both these sectors tried their best to pull the market higher, but they did not get support from other sectors. PSU banks and healthcare rose only marginally at less than half a percent, which was not enough to prevent a major market decline. There was no significant response from any other sector, which further weakened the market sentiment.
Rs 2.62 lakh crore drowned in one stroke
The worst impact of this market tussle was on the wealth of investors. If we look at the data, a huge decline was seen in the market capitalization of companies listed on BSE (Bombay Stock Exchange) today. A trading day earlier, on February 4, 2025, the total market capitalization of all stocks on the BSE stood at Rs 4,69,16,207.26 crore. When the market closed today, this figure had fallen to Rs 4,66,52,710.72 crore. This simply means that investors’ capital worth Rs 2,62,010.31 crore was lost in just one day of trading.
At the end of the day, both the major market indices closed in the red. Sensex closed at 83,313.93 with a huge fall of 503.76 points, which is a decline of 0.60 percent. Nifty 50 also could not escape this fall and closed with a fall of 133.20 points at 25,642.80, which is a decline of 0.52 percent.
