Share Market Crash / The market was hit by recession, investors lost Rs 6.40 lakh crore in two days

The stock market continues to fall sharply, causing investors to lose Rs 6.40 lakh crore. US tariffs, profit booking, rising crude oil prices, decline in heavyweight stocks and surge in the dollar index are the main reasons. The Sensex fell 800 points, while the Nifty fell 205 points.

Share Market Crash: The Indian stock market has once again faced a huge decline. This decline, which started on March 25, has drowned investors' Rs 6.40 lakh crore. Despite a slight increase on Tuesday, investors lost Rs 3.34 lakh crore, while on Wednesday the Sensex and Nifty fell by 1%, causing a loss of more than Rs 3 lakh crore during trading.

Five major reasons behind the decline

  • Uncertainty of US tariffs - Uncertainty remains about US trade policies, which has increased volatility in the market.
  • Selling due to profit booking - After the recent 5.7% gain, investors started booking profits, putting the market under pressure.
  • Rise in crude oil prices - Crude oil prices have reached a three-week high due to global supply concerns, affecting the Indian market.
  • Fall in heavyweight stocks - The fall in shares of companies like HDFC Bank, Infosys, Reliance Industries, Bajaj Finance had a negative impact on the Sensex.
  • Increase in dollar index and bond yield - Due to the increase in the dollar index and US bond yield, foreign investors are withdrawing money from the Indian market.
Status of Sensex and Nifty

On Wednesday, the Sensex was trading 800 points lower at 77,237.24, while the Nifty fell 205 points to 23,463.65. Earlier, the Nifty had gained 5.7% in 7 consecutive trading days.

Way forward for investors

According to market experts, it is necessary to be cautious in the current circumstances. Investors should adopt a long-term view and maintain investment in quality companies. It is also important to keep an eye on global factors, as US trade policy, crude oil prices and dollar index will determine the direction of the market in the coming days.