Investors’ blood dries up due to stock market crash
Mumbai, Dt
The stock market is witnessing such a decline that the blood of investors has dried up. This is the fifth consecutive day of carnage in the market on Thursday. Large cap or small cap, they are not taking the name out of the recession. About 70 per cent of the BSE 500 stocks are in a bearish grip. Investors’ wealth has halved in shares of about 20 companies. The market is seeing strong selling pressure. Key indices are down 15 per cent from their 3-week highs. While small caps and mid caps are down more than 50%. Currently, four out of every five stocks are declining. About Rs 5 lakh crore of investors sank in Thursday’s trading. Thus, since the April 11 high, investors have sunk nearly Rs 5 lakh crore in the market. In the US, lower-than-expected inflation, a steady rise in the dollar, and continued selling by foreign investors are some of the main reasons for the slowdown in the market. According to the latest US CPI data, inflation eased to 6.5 per cent in April from 7.5 per cent in March. However, inflation has been higher than the estimate of 7.1 per cent. The US dollar, on the other hand, is at a two-decade high. This is causing significant losses in emerging stock markets. Most Asian markets are seen trading at the red mark. Speaking of foreign investors, the FPI on Wednesday raised Rs. 4,606 crore net withdrawals. All eyes are now on India’s April CPI data. Inflation is expected to rise here too.
The Bombay Stock Exchange (BSE) Sensex on Thursday fell 4.15 per cent, or 117.08 points, to close at 8.30. The 30-share barometer Sensex opened at 8,305 today. During the trading session, it touched a high of 6.5 points and a low of 9,605 points. At the close of trading, out of 20 Sensex stocks, only two were green and the rest were red. The Nifty also closed sharply lower. On Thursday, the National Stock Exchange (NSE) Nifty fell 4.5 per cent, or 30 points, to close at 12,205. It opened today on 1901. During trading, it moved up to a maximum of 12,031 points and a minimum of 12.5 points. At the close, only one of the 30 Nifty stocks appeared on the green and the rest on the red.
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