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Today proved to be Black Friday in the stock market. The storm of fall from the US created a storm in the Indian stock markets this morning. As soon as the markets opened this morning, they fell heavily. At one point the market fell by more than 1000 points. The 30-share BSE Sensex fell 730.17 points, or 1.22 percent, to 59,076.11 points in early trade. However, there was some recovery in the market in the later hours and the market fell 671 points at the end of trading.
Top Gainer and Loser
Major stocks that fell in the Sensex pack were HDFC Bank, SBI, HDFC & IndusInd Bank, Axis Bank, Bajaj Finserv, M&M, L&T, Reliance, Infosys and TCS. In contrast, Tata Motors, Maruti, NTPC, Sun Pharma, Power Grid and Titan advanced.
Sensex top 30
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “The sell-off in the US markets was triggered by the 60 per cent fall in SVB Financial. It is a bank, which mainly funds startups. This affected the market sentiment, leading to pressure on banking stocks. There is growing concern that a rise in interest rates could impact loan repayments.
5 important reasons for the fall in the market
- Unnecessary step of Silicon Valley Bank: SVB Financial Group took unnecessary step on Thursday and had to bear the brunt of it. Indeed, the bank on Wednesday launched a $1.75 billion share sale to shore up its balance sheet. This had a negative impact on the bank’s stock. This caused the bank’s stock to fall 60% and the bank’s market cap decreased by more than $80 billion. Its effect is being seen on the stock market around the world.
- Selling in banking and IT stocks: The effect of Silicon Valley Bank is being seen in the Indian market. Today tremendous selling is being seen in banking and IT stocks. Its pressure has been on Sensex and Nifty. Due to this, there has been a big fall in the market.
- Weakness in global stock markets: This fall in the Indian market is due to the weakness in the global stock markets. There was a major decline of 550 points in the US market Dow Jones and 240 points in Nasdaq yesterday. Asian markets also declined. This has affected the Indian market.
- Weakness in rupee against dollar: According to experts, weakness in rupee against major currencies overseas also affected the market sentiment. The rupee has crossed 82 against the dollar.
- Effect of increase in interest rates by Fed: To control inflation in America, there may be another increase in interest rates by the US Fed. Its effect is being seen on the stock markets around the world.
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