Sensex Nifty Stock Market Crash: For the sixth consecutive trading session on Monday, January 12, investors had to suffer huge losses due to selling pressure…
highlights
- The Indian stock market has been under pressure for the last few trading sessions due to uncertainty on both the domestic and global fronts.
- A big fall was seen in the market as soon as it opened on Monday, January 12. At present investors seem to be adopting a cautious approach.
- Lack of clarity on trade deal, FIIs flow and movement of crude oil will decide the direction of the market in the coming days.
The trend of decline in the Indian stock market continued on Monday, January 12 also. Investors suffered huge losses due to selling pressure for the sixth consecutive trading session. In early trade on Monday, BSE Sensex fell more than 500 points to the day’s low of 83,043, while NSE Nifty 50 slipped more than 140 points to 25,550.
Stock Market Today: Investors lost billions of rupees
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So far, the Sensex has fallen by about 2,718 points from the record closing level of 85,762.01 on January 2. In the same period, Nifty has registered a decline of about 3% and has reached a low of 25,529.05.
Nearly ₹17 lakh crore has been wiped off the market capitalization in the last 6 days, which has increased concerns among domestic and foreign investors. With this fall, the total market cap of all the companies listed on BSE has come down to ₹464.39 lakh crore, which shows a decrease of ₹16.85 lakh crore in 6 days.
This decline is the market’s worst weekly performance in more than three months. Let us know what are the main factors which are affecting Indian shares –
Trump tariffs and India-US trade deal in limbo
The biggest pressure on the Indian market is coming from America. The situation regarding the India-US trade agreement is not clear and the uneasiness of investors has increased further due to the postponement of the Supreme Court’s decision on the tariff policy of US President Donald Trump. Various events related to India and global geopolitical tensions have made the market weak.
The statements of the US administration regarding the US-India trade deal are increasing confusion, the direct impact of which is visible on the market. Apart from this, issues like Iran crisis, situation in Venezuela and Trump’s statements regarding Greenland have harmed investor sentiment. All these factors have pushed the India VIX higher, indicating further volatility.
Continuous selling of FIIs
Continuous selling by foreign institutional investors (FIIs) has further worsened the market condition. Last week on January 9 (Friday), FIIs sold shares worth ₹3,769 crore. This was the sixth consecutive session when foreign investors withdrew money from the Indian market. Due to decrease in liquidity, the pressure on Sensex and Nifty deepened.
weak global signal
Markets all over the world seem to be in panic due to the continuous statements of US President Donald Trump. There are no signs of relief from global markets either. Questions raised regarding the independence of the US Federal Reserve have increased the concern of investors. US equity futures fell after Fed Chairman Jerome Powell’s statement. After this, S&P 500 futures fell about 0.5%. There was a weakness of 0.1% in European futures.
Although in the Asia-Pacific region, except Japan, the MSCI index showed a slight rise, but overall the market environment across the world remains cautious.
Crude oil price pressure
Crude oil prices are always a matter of concern for India. In recent times, volatility in the oil market has increased due to geopolitical tensions. Developments related to Venezuela and Iran have increased apprehensions regarding supply. Brent crude has strengthened slightly to around $63.29 per barrel, while WTI crude is at around $59.06 per barrel.
Although there was not much change in prices on Monday, there was a rise of more than 3% in both the benchmarks last week, which is considered a negative sign for the Indian market.
weak technical signals
Even at the technical level, the market situation does not look strong. According to market experts of ET NOW Swadesh, both Sensex and Nifty have slipped below the important support level. After last week’s sharp decline, selling pressure has increased further, due to which market sentiment remains negative in the short term.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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