Market Closing: Market crashed for the 5th consecutive day, Nifty at 5-month low; Rs 20 lakh crore loss in three days
The market opened with a decline. As the day passed, the decline in the market increased. In the end, Sensex closed down by 984 and Nifty by 324 points.
The carnage that started in the Indian markets last week continued for the fifth consecutive day. Nifty has fallen by 2.7% in the last five trading sessions. Today Nifty closed at a five-month low. On Wednesday, the market opened with a decline amid poor global signals. As the day passed, the decline in the market increased.
In the end, Sensex closed down by 984 and Nifty by 324 points. Volatility index India VIX also closed above 5% today. Today the banking index fell by more than 1,000 points, today was also the last weekly expiry of Nifty Bank.
Market cap of 20 lakh crores wiped out this week
This week so far, the market cap of BSE listed companies has decreased by about Rs 9 lakh crore, in these three days of trading sessions, the total market of BSE listed companies has been wiped out by Rs 20 lakh crore. Nifty companies have lost market cap of Rs 2.5 lakh crore today.
Why is the market falling?
FPIs continue to sell
FPIs continue to sell for the 32nd consecutive day
Outflow of about Rs 24,000 crore so far in November
FPIs had withdrawn Rs 1.14 lakh crore in October
China recently announced a new stimulus package
Investors turned to China due to India’s expensive valuation
Weak rupee, strong dollar
Rupee is continuously weakening against the dollar
Dollar index continues to strengthen, close to 106
US 10-year bond yield is above 4.4%
Interest rates are unlikely to decrease soon due to rising yields
Money is flowing out of emerging markets and going to the US
Concern over retail inflation
Retail inflation at 14-month high in October
Retail inflation rate reached 6.21% in October
Retail inflation crossed 6% for the first time in a year
Market sentiment also deteriorated due to rising inflation
Rise in inflation pushed the possibility of rate cut
Weakness of rupee added fuel to the fire of inflation
All-round decline
There was an all-round decline in the market today. All sectoral indices fell. The biggest sell-off was seen in realty. Nifty Realty closed down by more than 3%. Suntech Realty and Prestige Estates fell by more than 4%.
Nifty Bank and Nifty Auto also fell by more than 2%. Talking about bank shares, SBI, PNB, HDFC Bank, ICICI Bank all fell. If we look at auto, Hero MotoCorp fell by 4% and Mahindra & Mahindra by more than 3%.
Pressure also continued on the shares of railways, defense and government companies. Midcap, Smallcap also fell by more than 2%.
Sensex closed below 77,700
Sensex opened at 78,495. It reached a low of 77,533 during the day. Finally, the Sensex closed at 77,691 points, down 1.25% or 984 points. There was buying in 4 of its stocks and selling in 26.
Nifty closed below 23,600
Nifty opened at 23,822. It reached a low of 23,510 during the day. The Nifty closed at 23,559, down 1.36% or 324 points. There was buying in 6 of its stocks and selling in 44.
TOP GAINERS
Britannia (+0.40%)
Grasim Industries (+0.35%)
Tata Motors (+0.25%)
Asian Paints (+0.13%)
NTPC (+0.04%)
TOP LOSERS
Hero MotoCorp (-4.21%)
M&M (-3.47%)
Hindalco Industries (-3.40%)
Tata Steel (-3.11%)
Eicher Motors (-2.94%)
Decline in all sectoral indices
All sectoral indices saw a decline. Realty fell by 3.17%. PSU Bank saw a decline of 3.08%. Metal fell by 2.66%. Nifty Bank declined by 2.09%.
How was the overall trading?
668 shares rose and 3,301 shares fell in Bombay Stock Exchange (BSE). There was no change in 98 shares.
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