Stock Market News: The effect of increasing geopolitical tension in West Asia was clearly visible on the Indian stock market. There was heavy selling in the market on Wednesday and major indices closed with a sharp fall. BSE Sensex based on thirty shares fell by 1,342.27 points or 1.72% and closed at 76,863.71 points.
It had fallen to 1,446.72 points during trading. At the same time, NSE Nifty 50 of fifty shares fell by 394.75 points or 1.63% and closed at 23,866.85 points and went below the important level of 24,000. Of the companies listed on BSE, 2,380 shares closed in the decline, while 1,881 shares closed in the rise and there was no change in 153 shares.
What is the reason behind the decline?
According to Ajit Mishra, Senior Vice President (Research), Religare Broking, instability in global markets has increased due to increasing tension in West Asia. The fear of crude oil supply being affected, the danger of rising inflation and concerns about the impact on economic growth have made investors cautious. Apart from this, continuous selling by foreign institutional investors (FIIs) and weakness of the rupee also reduced the risk appetite of the market.
Which stocks fell the most?
Among the companies included in Sensex, Bajaj Finance had the biggest decline of 5.01%. Apart from this, major decline was also seen in stocks like Axis Bank, Bajaj Finserv Mahindra & Mahindra Maruti Suzuki Bharti Airtel Kotak Mahindra Bank. On the other hand, Sun Pharmaceutical Industries and NTPC were the leading stocks.
Impact on midcap and smallcap
BSE Midcap Select Index of medium companies fell 1.55%, while BSE Smallcap Index of small companies fell 0.61%. Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services, said that after the rally of the last session, the market is again under pressure as FII withdrawals and selling in banking, financial services and auto stocks have increased.
surge in oil prices
In the global market, Brent Crude increased by 5.76% to reach $ 92.86 per barrel. Rising oil prices also increased investors’ concerns. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 4,672.64 crore, while domestic institutional investors (DIIs) bought shares worth Rs 6,333.26 crore. Condition of global markets: In Asian markets, Nikkei 225, KOSPI and Shanghai Composite Index closed with gains, while Hang Seng Index closed with a decline. Experts believe that in the coming time, investors will wait for the inflation data and other macro-economic signals from America and India before making new investments, hence the market may remain cautious for now.
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