Stock Market Crash: The last trading day of this week, ie Friday, proved to be Black Friday for investors in the opening trade. The Sensex broke more than 650 points at the start of trading. At the same time, the Nifty has also weakened by about 200 points. In such a huge decline of the market, the market cap of listed companies on BSE has decreased by more than 2 lakh crores. This means that about 2 lakh crores of investors were drowned within a few minutes. The biggest reason for selling in the market is the decline in global markets, especially in the US markets.
The Sensex closed at 38,990.94 on Thursday. At the same time, it has weakened to the level of 38300 in today’s business. On Thursday, the market cap of BSE listed companies was Rs 1,56,86,990 crore. It was reduced from Rs 1,54,86,000 crore on Friday. Today the Sensex opened at the level of 38,325, while it showed a high of 38,575.40.
The bad condition of heavyweight shares
All the shares of Sensex 30 weakened in today’s trade. The sell-off in ICICI Bank, SBI, Kotak Bank, Axis Bank, IndusInd Bank, HDFC and HCL Tech have spoiled the mood. All major 11 indices are also in a red mark on Nifty. Bank and the financial index have shown the weakness of more than 2 percent. Auto and IT index also declined.
Global sales are a big reason
On Thursday, there has been a huge weakness in American markets. On Thursday, the Dow Jones lost 807.77 points, or 2.78 per cent, and closed at the level of 28,293. Nasdaq fell by 598.34 points, or 4.96 per cent, to close at 11,458. The S&P 500 index fell 125.78 points, or 3.51 percent, to close at 3,455.
The market has reached high, and correction is possible
Profit recovery is also happening in the market which has gone very high. The S&P 500 had gained over 55 per cent and the Nasdaq Composite had risen by 70 per cent since the March low. At the same time, the Dow Jones has also recorded a growth of more than 50 percent. After this boom, the correction was already expected in the market.
These things also spoiled the sentiment of American markets
Actually there was a sharp sell-off in FAANG shares yesterday. FAANG shares fell 10 per cent. Traders in the US fear a slow recovery. The trade deficit is also expected to increase in July.
Asian markets also fall
Today Asian markets are also seeing weakness. SGX Nifty is seeing the weakness of 1.27 percent and Nikkei 225 about 1 percent. The Strait Times also sees a weakness of 1.70 per cent and Hangseng is down by 1.90 per cent. Taiwan weighted 0.96 percent and Kospi 1.75 percent weakness is seen. Shanghai Composite is also down by 1.4 per cent at 3,338.18 level.
Cases are increasing in India
The cases of Novel Coronavirus COVID 19 in India are the fastest-growing worldwide. The number of COVID 19 patients in the country has crossed 39 lakh. In the last 24 hours, 83,341 new cases of the corona were reported in the country and 1,096 people died. According to the Union Health and Family Welfare Ministry data as on 4 September 8:00 am, the total number of cases of Covid-19 in India has been 39,36,748. Of the total cases, 30,37,152 patients have been cured/discharged so far. There are still 8,31,124 active cases. So far 68,472 people have lost their lives in the country from Corona.
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