Investors lost Rs 2.52 lakh crore in one day, know the reason behind the bleeding of 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.

There was a huge jump in the price of crude oil also. At the same time, there was a decline in the rupee. Due to both these reasons, the morale of investors was broken and they sold heavily.

Taapsee of Mehta Equities says that undoubtedly the Indian economy is in a very strong position. But, a flood of negative news could lead to a big fall in the Indian stock market in the times to come, most of which will come from the global front.

Among Sensex majors, Sun Pharma, Maruti, Power Grid, Titan, JSW Steel, Tech Mahindra, Larsen & Toubro and SBI declined. At the same time, Tata Motors, Tata Consultancy Services and Nestle remained profitable. Stock markets were closed on Thursday on the occasion of Eid-ul-Fitr.