After a long gap, the stock market witnessed a strong rise during the last trading session. This was not limited to India alone; Stock markets around the world were seen rising rapidly. Sensex and Nifty also rose significantly and closed with huge gains. However, this enthusiasm did not last long; As soon as trading started on Thursday, both the indices were seen falling rapidly. After a weak start, the 30-share Bombay Stock Exchange Sensex suddenly fell by more than 900 points in a short period of time, while the National Stock Exchange’s Nifty also opened in the red. Amid this fall, shares of many big companies, from Adani Ports to Infosys, were trading with huge losses.
Sensex-Nifty’s rise stopped
On the last trading day—Wednesday—the BSE Sensex opened at 77,290 and rose like a rocket throughout the day, closing at 77,562.90 with a gain of 2,946.32 points (or 3.95%). In contrast, this 30-share index looked lackluster on Thursday; After opening more than 200 points lower, it quickly fell further—a massive decline of more than 900 points—and touched 76,624.
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As far as NSE Nifty is concerned, there was a strong rise on Wednesday; After starting trading at 23,855, it closed at 23,997.35 with a gain of 873.70 points (or 3.78%). It followed a similar trend to the Sensex: it opened lower—falling nearly 90 points at 23,909—then fell further to 23,815, after which its fall accelerated further. At the time of writing, the index was trading at 23,759, down 238 points.
1,288 shares opened in ‘red zone’
During early trading, while shares of 1,215 companies on the stock market opened in the “green zone”—that is, they recorded gains—while shares of another 1,288 companies struggled and opened lower than their previous closing prices. Besides, shares of 174 companies showed no change in position and opened in “flat” mode.
Talking about the biggest falling stocks, Infosys and Adani Ports—both included in the BSE large-cap category—opened down more than 2%. Meanwhile, shares of IndiGo and HDFC Bank also gave up yesterday’s gains and opened in the ‘red zone’. Apart from this, in the mid-cap segment, shares of Hindustan Petroleum, Coforge and Bharat Forge were also trading with losses. Talking about small-cap stocks, shares of Chola Holdings (down 4%) and PGEL (down 2.50%) were trading lower.
**Main reason for decline**
If we look at the reasons for this sudden decline in the stock market, the main reason seems to be the resurgence of tension in the Middle East. In particular, concerns have increased following reports that a previously announced two-week ceasefire between the US and Iran has broken. As a result, most markets across Asia were also seen trading in the ‘red zone’. Amid these negative global cues, the market environment in India also deteriorated, leading to heavy losses in both Sensex and Nifty. Additionally, crude oil prices have seen a modest recovery—after recent sharp declines—adding further pressure to the markets.
