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Investors lost Rs 2.52 lakh crore in one day, know the reason behind the bleeding of the Indian stock market
For some time now, the Indian stock market has been witnessing a record-breaking rise. But there was a huge fall in the benchmark Sensex on the last trading day of the week and it fell by 793.25 points and closed at the level of 74244.90. Due to this, investors' wealth worth Rs 2.52 lakh crore was lost on Friday. Let us know why there was such a big fall in the Indian stock market.
The Indian stock market has been rising at an unprecedented rate for some time now. However, on the final trading day of the week, the benchmark Sensex saw a sharp decline, falling 793.25 points to close at 74,244.90. As a result, on Friday, investors' money totalling Rs 2.52 lakh crore was lost.
Companies listed on the BSE saw a decrease in market capitalization of Rs 2,52,301.16 crore, reaching Rs 3,99,67,051.91 crore.
Mehta Equities Limited's Senior VP (Research), Prashant Tapse, explained the sharp decline in the market. "The stock market anticipated that the US Federal Reserve, which is in charge of setting interest rates, would do so three times this fiscal year," he stated. However, due to an increase in inflation, expectations of interest rate cuts were reduced.
Prashant said that now the Indian stock market feels that the wait for interest rate cut in America will be long. The market has reacted quickly to rising inflation and diminished expectations of interest rate cuts.
