Since February 2, the Sensex has fallen by about 2500 points. There is a lot of profit-booking being seen in many small and big stocks. During this, the market cap of companies listed on BSE decreased by about Rs 7.5 lakh crore.
Stock Market falling: Selling pressure continues in the stock market. There was a boom in the market on the budget day and the next day of the budget, but after that today the market is showing weakness for the fourth consecutive day. Since February 2, the Sensex has fallen by about 2500 points. There is a lot of profit-booking being seen in many small and big stocks. During this, the market cap of companies listed on BSE decreased by about Rs 7 lakh crore till 2:30 pm on February 8. Although the government had made big announcements for many sectors in the budget, but global sentiments are weighing heavily on the market. There are many such factors, which are spoiling the mood and environment of the market.
7.5 lakh crore of investors cleared
On February 2, the market cap of companies listed on BSE closed at Rs 2,70,64,905.75 crore. On February 3, it came down to Rs 2,68,49,256.04 crore. At the same time, on February 4, it decreased further and it became Rs 2,67,71,278.74 crore. On 7th February it decreased to 2,64,82,633.52 crores and on 8th February at 2:30 pm the market capitalization decreased to 2,63,43,340.14 crores. That is, in 4 days, it decreased by about Rs 7.5 lakh crore. Sensex weakened 2500 points in 4 days. On February 2, it closed at 59558, which weakened to the level of 57059 today.
Crude is not stopping fast
Brent is mainly responsible for the volatility in the crude market. Brent crude recently reached $ 94 per barrel. Right now it is trading near $93. In the last one year, it has increased by 64 percent. IIFL’s VP-Research Anuj Gupta says that geopolitical tensions between Russia and Ukraine can further push crude prices. If tension increases, crude can reach from $ 98 to $100 per barrel.
Along with FII, DII is also selling
In the trading of Monday i.e. 7 February, Foreign Institutional Investors (FIIs) sold Rs 1157.23 crore in the market. While Domestic Institutional Investors (DIIs) also pulled out Rs 1,376.49 crore from the market during this period. FIIs pulled out $445 million from equity in January, while in February they’ve withdrawn $117 million so far. Between October and December, FIIs pulled out $512 million from equity.
Bond yields rise, political uncertainty
Santosh Meena, Research Head, Swastika Investmart, says that the 10-year bond yield in the US is steadily rising. Due to this, there is pressure on equity. FIIs have also sold their favorite heavyweight stocks like HDFC Twins, ICICI Bank, Infosys, Kotak Bank and Reliance. He says that Budget 2022 is better in terms of market and earning momentum is also better. Even after that the market is nervous. Due to the political uncertainty created due to the elections in 5 states, due to which there is pressure on the market.
Tough stand of central banks
Central banks around the world are indicating to keep their stance tough going forward. The US Fed can raise interest rates more than 3 times in the year 2022. At the same time, if we look at the domestic level, the monetary policy meeting of RBI has started and it will be announced on February 10. Even in view of this, investors are cautious. Apart from all this, concerns like inflation and COVID 19 are also affecting the market.
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