Stock Market Crash: The stock market is witnessing heavy selling in the trading of March 15. Both the Sensex and Nifty are the major losers in the major indices. The Sensex broke over 900 points in intraday trade and fell to a low of 49800. At the same time, Nifty also reached close to 14800 in the business. There has been a sellout in the stock market for the second consecutive day today. Both the Sensex and the Nifty lost nearly 2 per cent. Midcap and small cap stocks are also selling. At present, investors have received a setback of about 3 lakh crores in this fall of the market today. The biggest reason behind this decline is being described as the threat of a new wave of Corona in the country. At the same time, the bond yield in the US has also reached a 1-year high.
3 lakh crores drowned in 1 day
About 3 lakh crore rupees have been drowned by investors in a single day in the market’s downfall. When the market closed on March 12, the market cap of BSE listed companies was Rs 20789063 crore. At the same time, when the Sensex reached the low of 49800, the market cap of BSE listed companies was reduced to Rs 20498546 crore. That is, investors lost about 3 lakh crores in one day.
The decline due to these 5 reasons… ..
1. Corona virus again increased panic
In many countries around the world, including India, new cases of corona virus epidemic are increasing rapidly. Talking about India, in the last 24 hours 26,291 new cases of Corona and 118 deaths were recorded. This is the highest number of cases of corona in one day in the last 85 days. Earlier, on December 20, 26,624 cases were registered during 24 hours. There have been 1,13,85,339 total cases of COVID 19 infection in the country, while 1,58,725 people have lost their lives. The number has been steadily increasing since the last 5 days. Active cases have increased to 2,19,262, which is 1.93 percent of some infections in the country. At the same time, the recovery rate has also fallen to 96.68 percent.
2. US: 10-year bond yield at 1-year high
The selling pressure on equities has increased due to increase in bond yields in the US including India. The 10-year bond yield in India is 6.20 percent and in the US it is 1.64 percent. The 10-year bond yield in the US is at a 1-year high. When the bond yield increases, investors start selling equity and invest in bonds.
3. Inflation increased tension
There has been a huge increase in the wholesale inflation (WPI) in February. Wholesale inflation rose to 4.17 percent in February. This is a record level for the past 27 months. Let us know that the wholesale inflation rate was 2.03 percent in January. Whereas in the same period a year ago, the rate was 2.26 per cent. Apart from food and drink, the wholesale inflation of fuel and power has increased drastically. The Ministry of Commerce and Industry has released the data on wholesale inflation. At the same time, CPI in India increased to 5.03% in February from 4.1% in January. This has increased concerns about the economic revival.
4. Fall in growth
India’s industrial growth (IIP) declined by 1.6 percent in January. This has disturbed the sentiment of investors. IIP has dropped due to a decline in manufacturing and mining. This also had a negative impact on the market.
The market slipped on the first day of the week, the Sensex fell by over 700 points
5. Sell in bank shares
There is pressure on bank shares. The bank index has weakened about 2 per cent on the Nifty. Only 2 stocks included in the index are visible in green mark. Bandhan Bank is down by 4 per cent. RBL Bank is down 3 percent and Federal Bank is down 2.5 percent. HDFC Bank and ICICI Bank are down 2 per cent. SBI, PNB and Kotak Bank have weakened by 1 to 1.5 percent.