Stock market crash: The downward trend in the Indian stock market is showing no sign of stopping. Every new day, market investors expect improvement in the market but they are disappointed. Today, on Monday, the first trading day of the week, Nifty 50 also broke all the support of 23000. At the same time, Sensex also went below 76 thousand. At market close, BSE Sensex closed at 75,366.17 points with a huge fall of 824.29 points. Similarly, NSE Nifty also fell by 263.05 points and closed at 22,829.15 points. Only 5 out of 30 Sensex stocks closed in the green. Apart from large cap, mid and small cap stocks were badly hit in the market today. After all, what is the reason that the decline in the Indian market is not stopping? How far can the market break now? What to do if you are an investor? Let us answer all these questions.
Investors lost Rs 10 lakh crore
There was a big fall in the mid and small cap segments in today’s selloff. The BSE Midcap index fell by 3 per cent and the Smallcap index fell by more than 4 per cent. The total market capitalization (m-cap) of BSE-listed firms declined to below ₹410 lakh crore from ₹419.5 lakh crore in the previous session, causing investors to lose nearly ₹10 lakh crore in a single day.
Why is the stock market falling?
Weak quarterly results, strong dollar and GDP: There are many reasons for the fall of the Indian stock market. These include continuous selling by foreign investors, weak results of companies, slowdown in the Indian economy and continuous weakening of the rupee against the dollar. Foreign portfolio investors (FPIs) have been selling Indian equities since October last year, netting them stocks worth about ₹2.5 lakh crore. So far in January, they have sold over ₹69,000 crore in Indian equities till January 24.
US Fed meeting: Apart from this, the US Federal Open Market Committee (FOMC) meeting is scheduled to be held on January 28-29. In 2024, the US Fed cuts interest rates by one full percentage point. However, many experts believe that the rate-cutting cycle may be over, and the Fed is likely to maintain the status quo in January. This expectation stems from recent strong macroeconomic data and a cautious approach to assessing the impact of Donald Trump’s policies.
Trump’s tariff policies raise concerns: Markets around the world are keeping a close eye on US President Donald Trump’s tariff policies. After imposing tariffs on Canada and Mexico, Trump has threatened to impose 25 percent tariffs on Colombia because it has refused to take back deported illegal immigrants. Media reports indicate that Colombia has agreed to accept military planes carrying deported migrants. This is also affecting the Indian market.
Budget: Investors’ focus is on Budget 2025. Some experts believe that this time’s budget may have a glimpse of populism. Due to this, there is a possibility of fiscal increase which will further weaken the market sentiment. This reason is also spoiling the mood of the market.
Latest Business News
