Investors lose Rs 3 lakh crore in early selloff know the factors behind the fall

On the last trading day of this week, there is a strong selling trend in the domestic market. Equity benchmark indices Sensex and Nifty 50 are down more than one per cent. Talking about the Sensex, it fell 800 points to 59150 in early trade and the Nifty slipped more than 233 to 17650.

Due to this sharp sell-off in the market, the wealth of domestic investors decreased by Rs 3 lakh crore. The market cap of companies listed on BSE has come down from Rs 283 lakh crore to Rs 285.9 lakh crore. There are many reasons behind bringing down the market, which are being detailed below.

Global markets fall

There is a declining trend in the markets across the world, due to which negative sentiment has been created in the domestic market. There was a sharp sell-off in the US and European markets. Talking about the Asian index, Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hangsang, Taiwan’s Taiwan Weighted, China’s Shanghai Composite and Singapore’s Strait Times are in the red zone.

Expected rate hike

The policies of the US Fed may be announced next week. Due to a higher than expected rise in inflation in August, there are fears that the US central bank may raise rates for the third time in a row. Due to this there has been an outcry all over the world. The World Bank and the IMF have also expressed fears of a global recession, due to which a sell-off is going on.

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Selling pressure in heavyweight stocks

Reliance, HDFC Bank, ICICI Bank, Infosys and HDFC have the highest weightage on the Sensex. Selling is going on in all these shares. Buying is being done only in IndusInd Bank and Sun Pharma on Sensex. Infosys, HDFC Bank and Reliance also have the highest weight on Nifty and Nifty has also fallen due to selling in them. Buying in IT, PSU Bank, FMCG, Auto and Realty stocks kept the market under pressure. The indices of all sectors are in the red zone.

Rupee weakness

At the beginning of trading today, the rupee depreciated by 11 paise against the US dollar and slipped to Rs 79.82. The strengthening of the dollar and weakness in the domestic equity market put pressure on the rupee.

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fear of recession

Due to the increasing pressure of inflation and the fear of slowdown, the World Bank has warned of an economic slowdown in one of its reports. According to the World Bank report, policy tightening is being done in countries around the world, which is proving unsuccessful in controlling inflation and due to this there is a possibility of recession in the global economy next year.

The article is in Hindi

Tags: Investors lose lakh crore early selloff factors fall

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