Stock Market Crash Today: The stock market has fallen drastically in the business of Monday, February 22. The Sensex has a weakness of over 1100 points and it has slipped below 50 thousand today. Sensex today touched a low level of 49724. At the same time, the Nifty has gone down by 147 points to 14750. Explain that the Sensex crossed the level of 52500 this month. While in January it broke the level of 50 thousand. Currently, about 3.3 lakh crore rupees of investors have been drowned in this day in this fall of the market. High valuations of the market, weak global signals, rising cases of coronavirus and selling by foreign investors are impacting the market sentiment.
Lost more than 3 lakh crores in 1 day
The Sensex saw a weakness of around 1100 points at 3:15 minutes before the market closed. At that time, the market cap of BSE listed companies had come down to 2,00,60,161.09 crore. Whereas on Friday, February 19, it closed at 2,03,98,381.96 crore. That is, it has decreased more than 3.3 lakh crores in 1 day. Know the reasons that led to the decline in the market… ..
Coronavirus cases rising again
The risk of new strains of coronavirus has increased in many countries including the UK. In India also, cases of coronavirus are increasing again in some states including Maharashtra and MP. There is talk of lockdown in Maharashtra. In the coming days, some light restrictions can be imposed. Currently, the stock market sentiments have weakened. This can also reduce foreign investment. Domestically, investors have become cautious.
FPI Investment Reduction
There has been some decrease in Nivea in the market from foreign portfolio investors. This has happened due to high valuation of the market and the increasing cases of coronavirus again. On Friday, February 19, foreign portfolio investors pulled out about Rs 119 crore from the market. In this case, the trend has been weak for the last few days.
Lack of strong sentiments
There is a lack of any strong sentiment at the domestic and international level for the stock market. Global equities are also seeing weakness in the last few days. Even today, there are weak signals from foreign markets. Today the SGX Nifty is seeing a decline of 1.7 percent. Hangseng and Kospi are also down by 1 percent. Shanghai Composite has a weakness of about 1.5 percent. There have been mixed signals from American markets as well.
High valuation of the market
High valuation of the stock market is also a major concern. The Sensex has crossed the 52500 level this month. That is, the Sensex has gained more than 100 percent since the low of March. It did not take even 4 months for the Sensex to touch the level of 45000 to 50000 and 52500. In its ratio, the recovery in the country’s economy is sluggish. Hence, experts are also advising investors to invest in the market carefully.
On the Nifty, the volatility index INDIA VIX is seeing an increase of about 13.5 percent today. Now it has reached the level of 25.
Sell in IT shares
On 22 February, IT stocks are seen selling. The index has lost nearly 3 percent on the Nifty. Tech Mahindra is down 4 percent. TCS and HCL Tech are down 3 per cent. Most stocks on the index have weakened.