The domestic stock market declined for the fifth consecutive trading session. During this, the Sensex lost 3,824.49 points and the Nifty 1,117.5 points. Investors lost Rs 15.74 lakh crore due to the fall of the last five sessions. At the same time, on Thursday, the Sensex and Nifty fell to their lowest level in more than a year. Global markets softened after the US Federal Reserve raised policy rates by 0.75 per cent, the highest since 1994, to control inflation, which also affected the domestic market.
Despite a good start in morning trade, Sensex closed 1,045.60 points or 1.99 per cent lower at 51,495.79 on all-round selling. Nifty closed at 15,360.60, down 331.55 points or 2.11 per cent. This is the lowest level of Sensex and Nifty in more than a year.
The capital of listed companies declined by Rs 5.54 lakh crore to Rs 239.20 lakh crore in a single day of this decline. On the other hand, Brent crude fell 0.66 percent to $ 117.68 per barrel. Vinod Nair, Head of Research, Geojit Financial Services, said Federal Reserve’s decision to hike the policy rate was as expected. Hence the market edged up in the early trade.
29 companies in loss
Shares of 29 companies listed on the BSE closed in the red mark due to the fall in the market. Only Nestle shares gained. Tata Steel, Tech Mahindra, Bharti Airel, Wipro, IndusIndBank, Bajaj Finance, Kotak Mahindra Bank, NTPC, Reliance Industries, HDFC Bank, HDFC etc were among the losers up to 6.04 per cent.
- BSE Smallcap declined 2.87 per cent and Midcap declined 2.34 per cent.
- Metal indices fell the most at 5.48 per cent. Telecom fell 3.04 percent, realty 2.69 percent, tech 2.51 percent, IT 2.48 percent.
Markets around the world
- US markets rose. The Nasdaq closed with 2.5 per cent, the Dow Jones one per cent and the S&P-500 up 1.5 per cent.
- In Asian markets, Japan’s Nikkei rose 0.4 per cent and South Korea’s Kospi was up 0.2 per cent. Hong Kong’s Hang Seng was down 2.2 per cent and Shanghai Composite was down 0.6 per cent.
- Major European markets also saw a sharp decline.
Other major reasons for the decline
- Heavy selling in the shares of Reliance Industries, HDFC Bank and HDFC Ltd, which have strong holdings.
- The Bank of England and the Swiss National Bank have raised interest rates for the first time in 15 years.
- Fears of recession weighed on the global sentiment. This also put pressure on the domestic market.
- Foreign institutional investments are continuously making capital outflows. On Thursday, he sold shares worth Rs 3,257.65 crore.
Fed Reserve’s decision raised fears of recession
Jerome Powell, chairman of the US central bank Federal Reserve, has pledged to take all possible steps to control rising inflation. The Federal Reserve’s stance has raised fears of a recession. Inflation in the US has reached a record level of four decades. The Federal Reserve has increased policy interest by 0.75 percent. With this the rate has gone up to between 1.5 and 1.75 per cent.
- The Bank of England has also raised its key interest rates by 0.25 per cent to 1.25 per cent. Inflation in the UK has hit a 40-year record high as commodity prices jumped.
- The Bank of England has also raised its inflation forecast for October to 11 per cent. It was 9 per cent in April, the highest since 1982. The bank’s satisfactory level is 2 per cent.
Expansion
The domestic stock market declined for the fifth consecutive trading session. During this, the Sensex lost 3,824.49 points and the Nifty 1,117.5 points. Investors lost Rs 15.74 lakh crore due to the fall of the last five sessions. At the same time, on Thursday, the Sensex and Nifty fell to their lowest level in more than a year. Global markets softened after the US Federal Reserve raised policy rates by 0.75 per cent, the highest since 1994, to control inflation, which also affected the domestic market.
Despite a good start in morning trade, Sensex closed 1,045.60 points or 1.99 per cent lower at 51,495.79 on all-round selling. Nifty closed at 15,360.60, down 331.55 points or 2.11 per cent. This is the lowest level of Sensex and Nifty in more than a year.
The capital of listed companies declined by Rs 5.54 lakh crore to Rs 239.20 lakh crore in a single day of this decline. On the other hand, Brent crude fell 0.66 percent to $ 117.68 per barrel. Vinod Nair, Head of Research, Geojit Financial Services, said Federal Reserve’s decision to hike the policy rate was as expected. Hence the market edged up in the early trade.
29 companies in loss
Shares of 29 companies listed on the BSE closed in the red mark due to the fall in the market. Only Nestle shares gained. Tata Steel, Tech Mahindra, Bharti Airel, Wipro, IndusIndBank, Bajaj Finance, Kotak Mahindra Bank, NTPC, Reliance Industries, HDFC Bank, HDFC etc were among the losers up to 6.04 per cent.
- BSE Smallcap declined 2.87 per cent and Midcap declined 2.34 per cent.
- Metal indices fell the most at 5.48 per cent. Telecom fell 3.04 percent, realty 2.69 percent, tech 2.51 percent, IT 2.48 percent.