sharp fall in stock market
During trading, the Sensex fell below the level of 51500. The market is currently under pressure from weak foreign signals.
After the initial gains in the stock market today, once again the decline has dominated. Sensex is currently trading with a loss of more than 1000 points. On the other hand, Nifty has slipped below 15400. During trading, Nifty has made a year’s low of 15344. With this sharp fall in the market, about 5 lakh crore rupees of investors have been sunk. At present, most of the stocks included in the Sensex are trading with losses. The biggest decline has been seen in Tata Steel, the stock has broken more than 5 percent. On the other hand, Wipro, Tech Mahindra and Bharti Airtel have fallen more than 4-4 percent. During the trading, all the sector indices have seen a decline. Smallcap stocks have been the biggest losers. Smallcap 50 and Smallcap 100 have lost more than 3-3 percent.
Why did the stock market fall?
Many factors have been important for the decline in the market. The Federal Reserve has slashed US growth forecast for 2022-2023. Along with this, many market leaders have estimated that in the year 2022, the Federal Reserve may increase rates by 1.75 percent. At the same time, there has also been an apprehension in the market that due to the sharp increase in rates by the central banks, there may be a risk of recession. This has worsened the sentiments for the investor regarding the market. And investors are pulling out investments at every opportunity they get. Along with this, the selling of FPI continues. Due to which the market is not getting a chance to recover. So far in June, FPIs have sold about 25 thousand crore rupees. Apart from this, the domestic market is also taking cues from other foreign markets. Most of the Asian markets have seen a decline after the initial gains. At the same time, pressure has also been seen in the European market. Due to which the domestic market has also come in loss.
(update in copy)