Why stock market crash on Monday; need to know
On a tumultuous Monday, equity investors sought solace as the market plunged for the fifth consecutive session, despite rising geopolitical tensions and inflation.
What caused the stock All industries were in the red. The advance-decline ratio favored losers. Tech stocks were particularly battered during the session, following the heavy sell-off in US tech stocks.
The 30-share Sensex fell 1,545.67 points, or 2.62 percent, to 57,491.51. In the final 5 sessions, the index has dropped about 3,820 points. The NSE Nifty’s broader counterpart dropped 468.05 points, or 2.66 percent, to 17,149.10.
Investors lost Rs 9.15 lakh crore as the total market capitalization of BSE-listed firms, which reflects investor wealth, fell to Rs 260.49 lakh crore. Since Tuesday last week, investors have lost Rs 19.33 lakh in the market fall.
“While a further 500 point drop in the Nifty cannot be ruled out,” said Amar Ambani, Head – Institutional Equities, YES Securities, “on the bright side, the stock market is much lighter and good, heading into the Union Budget, after the high in mid-October 2021.” “Corporate earnings have been positive thus far, and Omicron has not significantly disrupted the economy.” The structural story is still intact, and I am confident that the Nifty will reach a higher high in 2022 than in 2021.
Cipla was the top gainer among bluechip stocks, rising 2.86 percent. ONGC was another day’s gainer.
JSW Steel was the main loser in the Nifty pack for the second day in a row, falling 6.92%. Other stocks that finished in the red included Bajaj Finance, Tata Steel, Grasim Industries, and Hindalco Industries.
Broader market indices finished lower, underperforming their headline counterparts. The Nifty Smallcap fell 4.78 percent, while the Nifty Midcap fell 3.86 percent. The Nifty 500 is the broadest index.
European stock exchanges were trading lower. The FTSE in London fell 1.08 percent, while the FTSE in Paris and Frankfurt fell 1.66 percent and 1.69 percent, respectively. Japan, Taiwan, and China rose in Asia, while the rest failed.
