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Mumbai11 hours ago
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Investors fiercely sold shares on Monday because of Corona’s increasing cases. The stock market has closed with a fall for the fifth consecutive day. The BSE Sensex closed down 1,145 points at 49,744.32. The morning index also touched the day’s highest level of 50,986.03. The market cap of listed companies has come down by Rs 4.1 lakh crore to Rs 199.88 lakh crore due to an all-round decline, from Rs 203.98 lakh crore on Friday.
Investor advice amidst declines
Vinod Nair, head of research, Geojit Financial Services, said the market sentiment deteriorated due to rising cases of Corona. The fall was supported by rising bond yields and inflation in the global market. Investors are advised to buy between declines.
The major reason for the fall in the stock market
62% shares fall on exchange
Tech Mahindra and M&M shares declined the most by 4-4% in the Sensex. Apart from this, shares of IndusInd Bank, TCS and SBI also lost 3-3%. On the other hand, shares of ONGC, Kotak Mahindra and HDFC Bank have closed with a slight gain. 3,179 shares traded on the exchange, with 1,039 shares gaining and 1,984 declining. The Sensex was down 434 points at 50,889.76 and the Nifty was down 137 points at 14,981.75.
According to Deepak Jasani, Head of Retail Research, HDFC Securities, most Asian markets fell. The main reason for this is inflation, high valuation and strictness in policy. He said that the rising price of crude oil is affecting the economy in a big way. The decline can also be called profit-booking, as the market has been steadily climbing since January in 2021.
Sells in IT, auto and banking stocks
Investors heavily sold IT, banking and auto sector stocks. As a result, the IT index is down 736 points, or 2.89%, at 24,766.45. The Nifty index also closed down 306 points at 14,675.70. The Nifty is down 5% from its alltime high in a fall of 5 sessions. On the other hand, the index has gained 57 points to close at 3,609.10 due to buying in metal stocks. Hindustan Copper shares closed up 14% the most.
Understand the situation of the most rising and falling stocks in the major stock market indices from the graphic below…
Continued heavy foreign investment
Due to economic reforms and budget-driven sentiment, investors have invested heavily. According to NSE provisional data, foreign institutional investors (FIIs) bought shares worth Rs 118.75 crore, while domestic institutional investors (DIIs) had sold shares worth Rs 1,174.98 crore. According to depositories data, Foreign Portfolio Investors (FPI) have invested Rs 24,965 crore between February 1-19. Has invested Rs 24,204 crore in equity market and Rs 761 crore in debt or money market.
Global market fluctuations
In the global market, Hong Kong’s Hangseng index closed down 414 points and China’s Shanghai Composite Index down 53 points. Similarly, the Kospi index of Korea has closed down 27 points at 3,079. Japan’s Nikkei index, on the other hand, gained 153 points to close at 30,171. Earlier, the US stock markets also closed flat.