The last day of the week was very difficult for the investors of the Indian stock market, because a huge fall was seen in the market. The Sensex closed nearly 1,000 points lower, while the Nifty also came under heavy selling pressure. Nifty Bank and other indices also closed in the red. Out of the top 30 stocks of BSE, 25 fell heavily, while only 5 stocks could escape this fall. The IT sector appeared the weakest, falling by more than 5 percent. Notably, Infosys fell 7 percent, TCS fell 5 percent, Wipro 2 percent, HCL 4 percent and Tech Mahindra fell 5 percent. During intraday trading, the Sensex fell nearly 1,200 points, while the Nifty fell over 350 points. However, the Sensex ultimately fell 1.27 per cent—or 982 points—to close at 76,681. Nifty closed 275 points or 1.14 per cent lower at 23,897.
Two main reasons for the decline in the stock market
**First main reason:** Tension seems to be increasing once again due to the fear of resumption of hostilities between America and Iran. Although the ceasefire is currently in effect, tensions remain over the Strait of Hormuz. Due to this, there has been a huge surge in oil prices and the prices remain above $105 per barrel. **Second main reason:** Infosys quarterly results. Infosys’ shares fell as much as 7 percent as its quarterly performance fell short of expectations. This led to a wave of selling in the entire IT sector, causing the sector index to fall by more than 5 percent. Thus, IT stocks played an important role in the market decline today.
Rupee weakened; Foreign investors sold
The Indian rupee also weakened against the US dollar. Today the Indian rupee fell 24 paise and closed at 94.25. Moreover, selling by foreign institutional investors (FIIs) continues. On Thursday, FIIs sold shares worth ₹3,200 crore.
huge loss to investors
Due to the huge fall in the stock market, wealth worth about ₹5 lakh crore was wiped out. Just a day ago, the market capitalization of BSE was ₹466 lakh crore, which fell to ₹461 lakh crore today. In other words, investors suffered a loss of approximately ₹5 lakh crore.
