Photo : ET NOW SWADESH Digital
There was an outcry in the stock market! Investors lost ₹6.3 lakh crore
highlights
- There was a huge fall in the stock market on 27 February and the market remained under pressure since morning.
- There was an atmosphere of fear among investors due to selling by foreign investors and weak signals from markets around the world.
- Except the IT sector, there was a decline in all other major sectors.
Why Stock Market Crash Today: There was a huge fall in the stock market on 27th February. The market remained under pressure since morning. There was an atmosphere of fear among investors due to selling by foreign investors and weak signals from markets around the world. Around 10:30 am, the Sensex fell by nearly 600 points to near 81,653.
At the same time, Nifty was also trading at 25,291, below 25,300, falling by about 205 points. Except the IT sector, there was a decline in all other major sectors. Weakness was also seen in small and medium stocks. Overall, an atmosphere of decline was seen all around in the market today.
There were 5 big reasons behind today’s fall in the stock market.
Read full article
1. Weak signals from global markets
American chip manufacturing company Nvidia announced its quarterly results. The company’s earnings were good, but investors were expecting even better results. Due to this reason the company’s shares fell by about 5.5%. The impact of this decline was not limited to America only. There was also pressure in the shares of tech and semiconductor companies around the world. All this had an impact on the Indian stock market and pressure was seen here too.
2. Increase in India VIX
India VIX reflects fear and uncertainty in the market. It increased by 3% and reached 13.44. This means that investors feel that market volatility may increase in the coming days.
3. Geopolitical tensions
The situation is not good in the Middle East. Talks between the United States and Iran on the nuclear issue have been inconclusive. If tension increases, it may affect markets around the world. At such times, investors prefer to withdraw money from risky investments like shares and invest it in safe places.
4. Weakness in rupee
The Indian rupee fell 4 paise to 90.95 against the dollar. When the rupee weakens, imports become expensive and the confidence of foreign investors may also decrease. This increases further pressure on the market.
5. Selling by foreign investors
Foreign investors (FIIs) have continuously sold shares. Shares worth about Rs 3,466 crore were sold on Thursday alone. When foreign investors withdraw money, the market falls and panic increases.
Nearly Rs 6.3 lakh crore stolen from investors
The selling was not limited to just big stocks, midcap and smallcap stocks also recorded a decline of up to 1%. Due to this fall in the market, the wealth of investors decreased by about Rs 6.3 lakh crore. And the total market cap of companies listed in BSE came down from Rs 469 lakh crore to Rs 462 lakh crore.
related news
end of article
