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On Monday, the first trading day of the week, the stock market had a bad start and both the indices opened with a heavy fall. As the day progressed, this decline got worse. The 30-share Sensex of the Bombay Stock Exchange slipped 1457 points to end at 52,847, while the Nifty of the National Stock Exchange closed at 15,774, down 427 points.
6 lakh crore loss to investors
Earlier, the BSE Sensex opened by breaking 1200 points, while the NSE Nifty index started trading below the level of 16,000. The Sensex had broken up to 1700 points during the day’s trading. Due to the fall on Monday, more than six lakh crore rupees of investors were drowned in one stroke. Earlier, on Friday, the last trading day of the last week, the stock market opened with a fall and finally closed on the red mark with a strong fall. The BSE Sensex slipped 1017 points to close at 54,303, while the NSE Nifty closed at 16,202 with a loss of 276 points.
RBL shares fell 23 per cent
The bank’s share price hit a record low of Rs 87.60 in intra-day trade on Monday after the Reserve Bank of India (RBI) approved the appointment of R Subramaniakumar as managing director and chief executive officer of RBL Bank. Its price fell nearly 23 per cent on the Bombay Stock Exchange (BSE).
1- Inflation rate in America
In May, the effect of increasing inflation in the US once again has increased on the US stock markets as well as the Indian market. Inflation here has increased at the fastest rate since December 1981. This increase in the inflation rate has also raised the possibility of another increase in interest rates by the Federal Reserve and this has had an impact on investor sentiments.
2- Weak in US futures trading
On Monday morning, the S&P 500 June futures fell 47.75 points, or 1.22 per cent, to 3,851.25. On Friday, it had fallen 2.9 percent in the last ninth week. The Dow Jones Industrial Average was down 2.7 percent on Friday, while the Nasdaq Composite was down 3.5 percent. Weakness in US stocks weighed on domestic sentiment.
3- Rupee depreciation against dollar
The Indian currency rupee has been depreciating continuously against the US dollar. For the first time on Monday, the rupee broke 28 paise and crossed the level of 78. The rupee opened at 78.20 against the dollar and continued to decline and soon reached the level of 78.29. Apart from this, the pressure of domestic inflation is also visible on the stock market.
4- Corona hit again in China
The effect of increasing cases of corona in China has also been visible on the markets. Let us inform that in Chaoyang, Beijing’s most populous district, the cases of corona have suddenly increased in large numbers and a lockdown-like situation has arisen again. Another hit of Corona has increased the concerns of development, which is affecting the markets.