Mumbai: The Indian stock market has witnessed a significant meltdown, wiping out nearly ₹25 lakh crore of investors’ wealth over the past four trading sessions. The decline has occurred due to global economic uncertainties, weak domestic cues, and also the heavy selling pressure on employees.
Key Indices Take a Hit
The benchmark indices, BSE Sensex and NSE Nifty, have witnessed steep corrections, as the Sensex fell by over 2,500 points, and the Nifty broke the critical support level. Banking, IT, and metal stocks are the worst affected.
Sensex: Ended 750 points lower today at 64,500.
Nifty: Ended at 19,200, losing 200 points.
Global Factors at Play
Market analysts put the blame for the slump at the doorsteps of:
1. Global Interest Rates: US Federal Reserve interest rates continue to stay high for an extended period of time.
2. Geopolitical Tensions: Conflicts in the Middle East escalate and create negative sentiment among investors.
3. China’s Economic Slowdown: China’s economic data turns weak and drags global trade down.
Domestic Factors Fuel the Decline
Adding to the global woes, domestic factors such as rising inflation, muted corporate earnings, and foreign institutional investor (FII) outflows have further worsened the situation. FIIs have reportedly withdrawn over ₹10,000 crore in the last week alone.
Sectors in Trouble
Banking: The major banks, HDFC and ICICI Bank, fell by 4-5%.
IT: Infosys and TCS saw significant corrections amid global tech sell-offs.
Metals: Declined due to fears of reduced demand from China.
Advice from Experts
Market experts warn to tread with care and not engage in panic selling. “It is a temporary correction due to external factors. Long-term investors should take the opportunity to invest in quality stocks at lower valuations,” said a prominent market analyst.
Investors Worried
Portfolio losses have troubled retail investors, and many have been asking questions on when the market will come back to stabilizing.
The experts feel that if we want the Indian market to bounce back, we should have strong economic fundamentals. The recent market crash reminds us of the volatility that exists in equities. The current slump might continue in the short term.
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