Stock Market Crash Reasons: There has been a huge decline in the Indian stock market on the last trading day of the week. Key benchmark index Sensex slipped 961.42 points and ended the day at 81,287.19. At the same time, Nifty also turned red like a tomato.
Nifty closed at the level of 25,178.65 with a fall of 317.90 points. There was a period of selling in stocks of FMCG, auto, realty and pharma sectors. According to the information, due to this fall in the market, investors lost about Rs 5.5 lakh crore. Let us know, what is the reason for this decline?
1. Uncertainty arising from America-Iran dispute
There was no positive result of the talks between the US and Iran on the nuclear program on Thursday. The distance between the two countries still remains. Meanwhile, the government of US President Donald Trump has talked about gathering a large fleet of aircraft and warships in such an environment.
Due to which an atmosphere of uncertainty is created. Meanwhile, investors have distanced themselves from the domestic market. This is also believed to be a reason behind the decline in the market.
2. Indian currency is running out of steam
The rupee slipped against the dollar during the trading day. The rupee started the day at 90.9475 dollars. There was pressure on the rupee due to selling by foreign investors and weak start of domestic stock markets.
3. Selling by foreign investors
Foreign investors had sold shares worth about Rs 3,466 crore on the previous trading morning. Whose effect was visible on today’s market. Selling by foreign investors also became the reason for this decline.
4. Global weakness became the reason
America’s Wall Street’s tech-heavy Nasdaq Composite Index closed with a decline on Thursday. The impact of the ongoing turmoil in the world of technology has also reached the Indian market. Shares of the world’s famous company Nvidia fell by 5 percent. At the same time, Alphabet’s shares fell by about 2 percent and Amazon’s shares fell by about 1 percent.
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