The market is in bad shape from Mumbai to Karachi, investors are going bankrupt like this

Share Market News / The market is in bad shape from Mumbai to Karachi, investors are going bankrupt like this

Share Market News - The market is in bad shape from Mumbai to Karachi, investors are going bankrupt like this

Share Market News: There has been a big decline in the stock markets of India and Pakistan in the month of January. The Bombay Stock Exchange (BSE) flagship index Sensex fell by about 1%, while the Karachi Stock Exchange 100 (KSE 100) fell by more than one and a half percent. Investors of both countries have suffered huge losses. The biggest reason for this decline is said to be the rise in the dollar index, due to which foreign investors have started withdrawing money from these markets. Let us know the main reasons for this decline and its impact in detail.

Big decline in India's stock market

In the last one week, the Indian stock market has been continuously declining. The Sensex fell by 2.32% i.e. 1,844.2 points last week, causing investors to lose more than Rs 20 lakh crore. Talking about January, the Sensex stands with a decline of 760.1 points so far.

On January 1, the Sensex was at 79,223.11 points, which has now fallen to 77,378.91 points. On the last trading day of last year, the Sensex closed at 78,139.01 points.

Due to this huge decline, Indian investors have suffered a loss of Rs 13 lakh crore in the month of January. This performance of the stock market has given a big shock to the investors, and there is an atmosphere of concern in the market.

The condition of Pakistan's stock market

The Karachi Stock Exchange 100 (KSE 100) also registered a huge decline during the same period. Last week's data shows that the KSE 100 fell by 3.69% i.e. 4,339.69 points.

The KSE 100 index was at 1,17,586.98 points on January 3, which fell to 1,13,247.29 points on January 10. So far, a decline of more than one and a half percent has been seen in the entire month of January.

On December 31, 2024, the KSE 100 index closed at 115,126.90 points. So far it has fallen by 1,879.61 points. Pakistani investors have also suffered huge losses due to this decline.

Effect of rise in dollar index

The main reason for the decline in the stock markets of both the countries is the rise in the dollar index. In January, the dollar index has risen by more than 1% to reach the level of 109.64. This has had a direct impact on the currency of India and Pakistan.

The value of the Indian rupee has fallen to Rs 86 per dollar, while the Pakistani rupee has reached an all-time low. The price of one dollar has now become Rs 279.72 in Pakistan.

According to experts, the dollar index is likely to cross the level of 110, which may further worsen the situation of the Indian and Pakistani rupees.

Exodus of foreign investors

Due to the rise in the dollar index, foreign investors have started withdrawing their money from the South Asian markets. So far, Rs 15,236 crore has been withdrawn from the Indian stock market. In Pakistan too, foreign investors are exiting the market, which is worsening the situation there.

What is the way forward for investors?

Experts believe that the stock markets of India and Pakistan may see further decline. The movement of the dollar index and global economic conditions will affect the markets of both countries. In such a situation, investors are being advised to secure their investments and keep an eye on the market conditions.

Conclusion

This fall in the stock markets of Mumbai and Karachi has caused huge losses to the investors of both the countries. The rise in the dollar index and the withdrawal of foreign investors are the main reasons for this. If the position of the dollar strengthens further in the coming days, then the decline in the stock markets of these countries may continue. Investors need to be cautious and keep a close eye on the market movement.