Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Thu, 24 Feb 2022 02:18 PM IST
Summary
Sensex Got Biggest Fall Of This Year: Thursday proved to be a bad day for the stock market and the BSE Sensex saw the biggest fall of this year so far. Sensex closed down by 2702 points. After the Corona epidemic, there were many occasions when the Sensex saw a big fall, but the reason for the decline today is not Corona but the war started between Russia and Ukraine.
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Expansion
Big declines since the Corona period
The stock market has collapsed several times since the start of the Corona epidemic in the year 2020. The Sensex has seen many of the biggest falls in history so far during the pandemic. The biggest fall in these came on 23 March 2020 when the Sensex broke 3934 points. After this, there were many such occasions when the Sensex caused huge losses to the investors. This trend is also being seen in 2022 and has been broken many times within just one and a half months, meanwhile, three major declines have been seen in it.
Sensex bad phase
date | The year | fall |
March 12 | 2020 | 2919 |
March 16 | 2020 | 2713 |
March 23 | 2020 | 3934 |
04 May | 2020 | 2002 |
May 18 | 2020 | 1068 |
26 February | 2021 | 1939 |
12 April | 2021 | 1707 |
26 November | 2021 | 1687 |
24 January | 2022 | 1546 |
07 February | 2022 | 1024 |
February 24 | 2022 | 2702 |
Reasons for the fall in the market
With the opening of the Indian stock market on Thursday, the main reason for the big fall is the conflict started between Russia and Ukraine. Soon after President Vladimir Putin’s announcement of military action, markets around the world registered a sharp decline. The three main reasons for this decline are as follows.
primary reason
The biggest reason for the earthquake in the stock market is the ongoing tension between Russia and Ukraine. After Putin’s address, investor sentiments were affected and the markets collapsed immediately. According to the news, Russian forces were bombing some Ukrainian cities after announcing the launch of special military operations in eastern Ukraine. Russia’s action is probably the worst case scenario from an investor’s perspective.
second reason
Due to the Russia-Ukraine crisis, global crude oil prices rose above $100 a barrel for the first time since 2014, this has also affected investor sentiment. Let us tell you that Russia’s Putin’s declaration of war has increased the fear of disruption in energy exports. Let us tell you that Russia is the third largest oil producer in the world, which mainly sells crude oil to European refineries. The countries of Europe take more than 20 percent of their oil from Russia.
third reason
Talking about the third reason, the February derivative series is expiring on Thursday. India VIX rose 22.39 per cent to 30.16 in early trade. Midcap and smallcap stocks have suffered a major setback amid negative market sentiment. In today’s trade, the BSE Midcap and Smallcap indices lost 576 points and 804 points, respectively.