The domestic stock market registered a big decline on Friday, the last trading session of the week. On August 2, the major index of the Indian stock market, Sensex and Nifty 50, fell by more than 1 percent. The benchmark Sensex of the Bombay Stock Exchange (BSE) closed at 80,981.95 with a huge decline of 886 points at the end of trading today, while the National Stock Exchange (NSE) Nifty closed at 24,717.70 with a decline of 293 points. The total market cap of companies listed on the BSE fell from about Rs 462 lakh crore in the last session to about Rs 457 lakh crore, causing investors to lose about Rs 5 lakh crore in just one session.
Why did the market fall sharply?
Stock market technical expert Kunal Saravgi says that the reason behind the big fall in the domestic stock market on August 2 is the fall in the US market and the Japanese stock market. There is no domestic reason behind the fall in the stock market. Saravgi told the investors that there is no need for them to worry about this fall. This fall should be taken as just an incident, no major impact of this will be seen on the Indian stock market in the future. Investors should carry on their business as they have been doing before. Choose good companies for investment.
This factor is also included in today’s decline
Weak global sentiment impacted the Indian stock market. Major markets in the US and Asia declined as concerns over economic growth eased and weaker-than-expected factory data in the US came out. In addition, concerns over valuations are growing and experts have pointed out that there is room for improvement in the market at this time. In addition, geopolitical tensions also affected domestic market sentiment. The June quarter results of the Indian corporate sector have been mixed so far, raising concerns that the market will not be able to maintain the current valuation levels. There was excessive buying in the Indian stock market, which was repeatedly touching record highs.
US and Japan markets crashed
Global equities fell after US jobless claims rose to a one-year high and the manufacturing sector contracted. Nasdaq 100 futures fell 1.6 per cent after Amazon posted negative earnings results and Intel reported weak sales. In Asian markets, Japan’s benchmark index suffered its biggest drop since 2016, hit by a stronger yen and its effects on the export-driven economy. Europe’s Stoxx 600 index fell 1.5 per cent.
Latest Business News
