The rapid sell-off in global stocks, rising cases of corona and heavy outflows in foreign funds have sent shockwaves through the stock market. More than Rs 11 lakh crore of investors have sunk due to continuous slump in the market in the last six years. In these 6 business sessions, the BSE Sensex has lost about 2750, or 7 per cent. It closed at 36,553 on Thursday after coming down with more than 1,100 points.
The global market was hit hard
The sell-off in the US and European markets has sent shockwaves through the domestic stock market. The BSE benchmark Sensex, which has a 30 per cent stake, fell 1114 points to close at 36,553. The 50-share NSE Nifty also plunged 307 points. Experts say that Rs 4 lakh crore of investors have sunk after the scandal. However, investors need not panic after this flurry. But yes..I have advised to avoid new investment.
Why the stock market exploded-
Experts say global markets are looking nervous after the FinCEN revelation. At the same time, concerns about global growth increase market tensions. That is why the stock market is in turmoil.
The market capitalization of BSE-listed companies fell to Rs 148.85 lakh crore from Rs 160.08 lakh crore on September 16 due to weak market sentiment. Abhimanyu Soft, head of research at IIFL Securities, said the market could still be volatile. Scotland and Britain have said they are considering a lockdown. It is possible that other countries may also impose lockdowns. Which will further worsen the market situation.
Money sunk in the last 6 quarters
The investments of 49 companies of Nifty have sunk in the last 6 quarters. Shares of IndusInd Bank, Tata Motors, Tata Steel and Bharti Infratel fell 21 per cent, 19 per cent, 15 per cent and 14.20 per cent, respectively. On the other hand only Dr. Reddy’s shares are up 9.30 per cent.