Stock Market Crashed / Eight lakh crores of investors drowned in a few minutes, know here three major reasons for this decline

The conflict between Russia and Ukraine took a new turn when Russian President Vladimir Putin announced a military operation. It also affected the Indian stock market and collapsed as soon as the market opened on Thursday. Within minutes, investors lost over Rs 8 lakh crore.

Big drop in market cap

It is worth noting that in the last trading session, the market cap of companies listed on BSE was Rs 255.68 lakh crore, but due to the huge fall on Thursday, it fell below Rs 248.09 lakh crore. At present, BSE's 30-share index Sensex is trading down 1800 points. All 30 stocks of Sensex are trading on the red mark.

Big blow to Midcap-Smallcap

Midcap and smallcap stocks have suffered a major setback amid negative market sentiment. In today's trade, the BSE Midcap and Smallcap indices lost 576 points and 804 points, respectively. The situation is that the volatility in the Indian equity market also increased, India VIX has climbed 22.39 percent to 30.16 in early trade. Talking about the Sensex stocks, Tata Steel, Bharti Airtel, IndusInd Bank and Tech Mahindra were the top losers so far, falling by 3.96 per cent.

Bad days since February 16

According to a report, due to the turmoil in the Indian stock market since February 16, investors are facing huge losses. The most important role in this has been played by the ongoing conflict between Russia and Ukraine, which has had a bad effect on the markets around the world. According to the report, till Wednesday, the market capitalization of companies listed on BSE had come down by more than Rs 9.1 lakh crore. On the other hand, the fall on Thursday has brought this figure even higher.

These are the reasons for the fall in the market

Let us tell you that the most responsible for the earthquake in the stock market is the ongoing tension between Russia and Ukraine. After Putin's address, investor sentiments were affected and the markets collapsed immediately. According to the news, Russian forces were bombing some Ukrainian cities after announcing the launch of special military operations in eastern Ukraine. Russia's action is probably the worst case scenario from an investor's perspective. Apart from this, due to the Russia-Ukraine crisis, global crude oil prices rose above $100 a barrel for the first time since 2014, this has also affected investors. Talking about the third reason, the February derivative series is expiring on Thursday. India VIX rose 22.39 per cent to 30.16 in early trade.