There has been a big fall in the stock market today, due to which investors have lost Rs 6 lakh crore.
There was chaos in the stock market on Wednesday. Due to which more than 16 crore investors in the stock market lost Rs 6 lakh crore. According to BSE data, Sensex saw a fall of 800 points. Whereas Nifty saw a fall of more than 250 points. According to experts, a decline of more than 2 percent has been seen in midcap, smallcap and microcap. On the other hand, due to the market being overvalued, profit booking has also been seen in the market. On the other hand, there is also a possibility of inflation increasing in America. Because of which the Fed may also increase interest rates in the next cycle. The effect of which is also clearly visible in the market. Let us also tell you what kind of data is being seen from BSE and NSE.
Stock market fell by 800 points
Bombay Stock Exchange’s main index Sensex fell by almost 800 points to reach 72,299.72 points. At present, Sensex is trading at 72,640.74 points with a fall of 454.48 points. However, today the Sensex opened at 73,162.82 points and also reached the day’s high at 73,223.11 points. A day earlier the Sensex had closed at 73,095.22 points. On the other hand, the main index of National Stock Exchange, Nifty, is also seeing a decline of 159 points, due to which Nifty is trading at 22,039.50 points. However, Nifty has also fallen by about 260 points to 21,938.90 points. However, today Nifty opened at 22,214.10 points.
Market investors lost Rs 6 lakh crore
Investors also suffered huge losses due to the fall in the stock market. According to the data, a day ago the market cap of BSE was around Rs 392 lakh crore. Which has come down to Rs 386 lakh crore today. This means that investors had to suffer a loss of Rs 6 lakh crore. At present the market cap of BSE is more than Rs 387 lakh crore. If experts are to be believed, a decline in the stock market may be seen in the coming days also.
Market sank due to these reasons
- SEBI’s action: The gravity-defying rally in smallcaps and midcaps has attracted the attention of Sebi, which has asked mutual funds to disclose more about risks in sectors where liquidity can be a challenge. Mutual funds are being asked to disclose how long it may take to accommodate large redemptions, what impact large outflows may have on the value of portfolios and how the fund will prepare to meet the outflows, Reuters reports. How much cash and liquid assets does he have?
- Ending expectations from Fed: Traders are awaiting the release of January’s PCE data, which could influence the Fed’s rate hike. According to CME Group’s FedWatch tool, expectations for a rate cut in the June meeting have dropped to 59 percent.
- Valuation: With the market cap-to-GDP ratio rising above 120 per cent, investors are finding some relief in valuations, especially in broader markets. After the end of the December quarter earnings session, expectations for FY2025 have not increased much overall.
- Global Market: MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.44 percent to 525.40 points. Which was earlier around seven-month peak of 531.56 after a strong rally. Japan’s benchmark Nikkei 225 declined 0.3 percent, the Hang Seng in Hong Kong slipped 1.4 percent, while the Shanghai Composite fell 1.9 percent.