There was a huge fall in the Indian stock market during the trading session on Thursday, April 2. Key benchmark indices—BSE Sensex and NSE Nifty 50—began trading in the red. By around 12:30 pm, the Sensex had fallen by over 1,300 points, while the Nifty 50 had slipped by 415 points. Due to this sharp fall at the beginning of the trading session, investors had to suffer huge losses. Let us know in detail about the losses suffered by investors and the reasons behind this decline in the market.
Loss of ₹10 lakh crore
The impact of the fall in the stock market was clearly visible on investors; They suffered a loss of around ₹10 lakh crore in the initial hours of trading alone. The total market capitalization of companies listed on BSE declined to about ₹412 lakh crore, causing a major economic blow to investors.
Due to decline in stock market
1. The reason for this decline in the stock market is being said to be the recent statements of US President Donald Trump. Trump has hinted at increasing tensions in the Middle East, which has increased volatility in markets around the world. He indicated that a major attack on Iran could occur in the coming weeks; Fears of increasing global uncertainty have weakened market sentiment.
2. For the last few days, foreign investors have been continuously staying away from the Indian market. According to the latest data, foreign investors continued selling in Wednesday’s trading session also. During this period, capital outflows stood at around ₹8,331 crore. Foreign investors have been withdrawing their money from the stock market for 22 consecutive trading sessions; Due to this trend the market is not getting the necessary support.
3. Brent crude oil prices also rose by more than 6 percent on Thursday, reaching around $107 per barrel. At the same time, American WTI crude also jumped by more than 5 percent and crossed $105 per barrel. This rise in crude oil prices has shaken the confidence of investors.
4. The market also witnessed a decline due to signals received from global markets. Asian markets—including domestic markets—fell sharply. Japan’s Nikkei fell more than 2 percent, while South Korea’s KOSPI fell more than 4 percent. Apart from this, the markets of China and Hong Kong also fell more than 1 percent. Responding to these signals, investors have adopted a cautious approach in their decision making, which is clearly visible in the current weakness seen in the stock market.
