Vikrant Shekhawat : Jan 14, 2025, 05:37 PM
Share Market Crash: In the last 100 days, the Indian stock market has seen a huge decline. On the day of Makar Sankranti, the stock market registered a slight rise, but overall both the Sensex and Nifty have come down well below their record levels in the last few months. The biggest impact of this decline has been on the investors, who have lost about Rs 60 lakh crore in total. Let us know in detail what are the reasons for this decline in the stock market and what effect it has on the investors.Fall from record high in stock marketOn 27 September 2024, the stock market was at its highest level in 52 weeks. On that day, the Sensex, the key index of the Bombay Stock Exchange (BSE), closed at 85,978.25 points. At the same time, the Nifty of the National Stock Exchange (NSE) also reached 26,277.35 points. However, after this the process of decline started in the market.Decline in Sensex: Since September 27, 2024, the Sensex has fallen by 9,642.5 points, which is about 11.21 percent.Decline in Nifty: During the same period, the Nifty has also come down by 3,143.2 points i.e. about 12 percent.Investors suffered huge lossesThe fall in the stock market has had a direct impact on the wealth of investors. On September 27, 2024, the market cap of BSE was Rs 4,77,93,022.68 crore. Since then, due to continuous decline, it has come down to Rs 4,18,10,903.02 crore in 100 days. This means that investors have suffered a loss of about Rs 59.82 lakh crore during this period.FPI selling became the main reasonThe main reason for this fall is believed to be the heavy selling by foreign portfolio investors (FPIs). According to data from National Securities Depository Limited (NSDL) and BSE Limited, from October to January 12, FPIs have withdrawn Rs 1.85 lakh crore from the Indian stock market.However, domestic institutional investors (DIIs) have invested Rs 2.18 lakh crore during this period, but the market has not been able to stabilize. DIIs are buying at low prices, due to which there is no improvement in the market.Effect of fall in rupee and crude oil pricesCrude oil prices and rupee weakness are also considered to be important reasons behind the fall in the stock market.Crude oil: Since September 27, the price of Brent crude has increased by 12 percent and it has crossed $ 80 per barrel.Rupee: The rupee has also weakened against the dollar and reached a record low of 86.58 per dollar. The weakness of the rupee has affected the returns of FPIs, due to which they are withdrawing money from the Indian market.Bond yield and Federal Reserve effect in AmericaThe rise in US bond yield and the policies of the Federal Reserve have also been seen behind the fall in the stock market.Bond Yield: The US bond yield was 3.7 percent in mid-September, which has now increased to 4.76 percent.Federal Reserve: The US Federal Reserve has cut interest rates for the first time in the last four years. During three policy meetings, the Fed has cut a total of 100 basis points.Slight rise in the market on TuesdayHowever, on January 14, the stock market closed with a slight rise. The Sensex closed at 76,499.63 points with a gain of 169.62 points. During trading, it also reached a low level of 76,335.75 points. At the same time, the Nifty closed at 23,176.05 points with a gain of 90.10 points.What is the way forward for investors?Experts believe that the market may see more volatility. The possibility of FPI buying resuming seems low at the moment. The main reason behind this is the fall in the rupee and high crude oil prices.However, the buying by mutual funds and DIIs can bring some stability to the market. Investors need to be cautious during this time and for those investing for the long term, this time can also be an opportunity to buy good stocks at cheap prices.