Fear of recession in stock market, investors lost Rs 15 lakh crore

Stock Market Today: On Monday, the local stock markets witnessed a sharp decline and the BSE Sensex plunged by more than 2,200 points. At the same time, the National Stock Exchange's Nifty also fell by a huge 662 points. The market came down due to all-round selling in bank, IT, metal and oil and gas stocks amid the declining trend in the stock markets of other countries of the world. Due to this decline, investors have lost Rs 15 lakh crore in a day. By the way, the stock market has seen a decline for the second consecutive day. Let us also tell you what kind of figures have been seen in the stock market.

Record fall in Sensex and Nifty

The Bombay Stock Exchange's flagship index Sensex fell 2,222.55 points or 2.74 percent to close at a low of more than a month at 78,759.40 points. This is the biggest decline in the market in a day after June 4, 2024. On that day, it closed at 78,295.86 points, down 2,686.09 points. On the other hand, the National Stock Exchange's Nifty also plunged 662.10 points or 2.68 percent to close at 24,055.60 points. During trading, at one point it had slipped 824 points to 23,893.70 points. This is also the biggest one-day fall in Nifty after June 4. On that day, the market fell by more than five percent after the results of the general elections.

How much loss did investors suffer

Sensex and Nifty fell by more than one percent on Friday. Thus, both the standard indices have fallen by about four percent in the last two trading sessions. The market capitalization of companies listed on the BSE fell to Rs 441.84 lakh crore on Monday. Investors had lost Rs 4.46 lakh crore on Friday. Thus, they have lost more than Rs 19 lakh crore in two days. However, on Monday, the BSE market cap has lost more than Rs 15 lakh crore.

Loss and gainers

The BSE Smallcap index, representing the shares of small companies, fell 4.21 percent and Midcap, associated with medium companies, fell 3.60 percent. Among the Sensex stocks, Tata Motors fell more than seven percent. Apart from this, Adani Ports, Tata Steel, State Bank of India, Powergrid, JSW Steel and Maruti also declined significantly. However, Hindustan Unilever and Nestle shares remained in profit.

Big decline in foreign markets

According to analysts, globally, Nikkei in Japan fell more than 12 percent. Market sentiment has been affected by rising tensions in West Asia. In other Asian markets, South Korea's Kospi, China's Shanghai Composite and Hong Kong's Hang Seng fell sharply. Japan's standard index fell 12.4 percent on Monday. The situation was more or less the same in other markets of the world. The reason for this is the fear among investors that the US economy may move towards recession. According to the report released on Friday, recruitment in companies in America was slower than expected last month.

On Monday, Japan's Nikkei closed at 31,458.42 points, down 4,451.28 points. It had fallen 5.8 percent on Friday. Overall, the biggest decline has been recorded in two days so far. Earlier, on October 19, 1987, it had fallen 3,836 points i.e. 14.9 percent. At that time, the decline in global markets was named Black Monday. A sharp decline was seen during trading in European markets. There was a significant decline in the US market on Friday.

What do experts say

Research Head of Geojit Financial Services Vinod Nair said that global markets fell sharply with investors taking a cautious stance on the apprehensions of recession due to disappointing employment figures in the US and stoppage of carry trade i.e. investment in assets of other countries by borrowing at cheaper rates due to sharp rise in Yen exchange rate. According to stock market data, foreign institutional investors sold shares worth Rs 3,310 crore on Friday.

Research Head of Swastika Investmart Ltd. Santosh Meena said that bears dominated the global markets. The initial reason for the market fall was the fear of reversal of Yen carry trade due to increase in interest rates in Japan. Employment figures in the US have worsened the situation. This has increased the fear of recession in the world's largest economy. All these affected the market sentiment.