The stock market saw a huge decline last week. The evaluation of investors fell ₹ 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 at a lower level in every session this week. During this period, the market capitalization of companies listed in BSE has fallen by ₹ 16 lakh crore. Let’s know the reasons behind this.
Why did the market decline?
Earlier this week, the American H-1B visa policy had a direct impact on the Indian stock market. On Monday, the stocks of Indian IT companies saw a huge decline due to increase in visa fee, causing a decline in the IT sector throughout the week. TCS shares fell 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 drugs, 50% on furniture and 25% on import of heavy trucks. It has a widespread impact on the Indian stock market.
For the last few days, large-cap shares, who have been the market tricks, have now come under the pressure of selling, due to which the Indian market remained under pressure for the whole week. Corporate income figures are coming next month. It is expected that tariffs and other foreign policies will affect the results of these companies. Once the Federal Reserve cuts interest rates once, investors were expecting another interest rate cut, but James Powell has refused to cut interest rates. The impact of a decline in the stock market is also visible.
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 insisting 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 the market needs support for fast.
