The stock market sold for the fifth consecutive day on Thursday. The BSE Sensex is down by 585 points to close at 49,216.52. The index also slipped by 48,962.36 in intraday due to heavy selling. Earlier on 26 February, the index came down from the level of 49 thousand. The Sensex index has lost 2300 points in a 5-day decline since March 12. The Nifty index has also fallen by 163 points to 14,557.85.
The stock market lost initial gains due to weak global cues
According to Vinod Nair, head of research, Geojit Financial Services, the stock market saw a steep decline due to the rise in US bond yields. The US bond yield has reached an all-time high since January, while the Fed Reserve has decided to hold interest rates steady. Apart from this, investors were also sold out due to rising corona cases in the country.
According to S Ranganathan of LKP Securities, selling in financial stocks put pressure on the stock market. Apart from this, profit booking in the IT and pharma sector means that investors made profits by selling shares at a higher price. Foreign investors are also continuously selling shares.
The market was open with an edge
Out of the 30 stocks included in the Sensex, 21 stocks declined, with HCL’s share falling the most by 3.4%. Apart from this, shares of Infosys, TCS, Tech Mahindra, Dr. Reddy’s and Reliance Industries have also seen a sharp decline. The Sensex opened 359 points higher at 50,161.25 in the morning and the Nifty opened 134 points at 14,855.50.
Banking and IT stocks were the biggest sellers
Investors sold the most shares in the IT and banking sectors. The IT index has closed 810 points or 3% down at 25,373.35. The Nifty Bank Index also closed down 372 points at 33,856.80. Bank of Baroda’s share slipped 3.8% in the index.
69% shares fall on the exchange, market cap reduced by Rs 2.42 lakh crore
At the same time, 3,121 shares traded on the BSE, with 830 shares closing up and 2,154 declining. It had 391 shares which included lower circuit. The market cap of the listed companies has increased to Rs 201.29 lakh crore as against Rs 203.71 lakh crore yesterday.
Fluctuations in the stock markets around the world –
In the US, the Fed Reserve said that the country’s economic growth is the strongest in nearly 40 years. That is why interest rates have been kept stable, leading to an increase in markets across the world. Japan’s Nikkei index closed up 1% at 30,218. Hong Kong’s HangSeng Index also gained 306 points. Similarly, China’s Shanghai Composite gained 17 points and Korea’s Kospi Index gained 18 points. On the other hand, All Ordinaries of Australia has fallen by 44 points to close at 7,003.
Large fluctuations in US markets-
In the US, the Fed Reserve has kept interest rates stable, reducing the 10 year bond yield. This led to a buyout in the stock market and the Dow Jones climbed 0.58% to close at 33,015 points. The Nasdaq and S&P 500 indices gained. European markets closed earlier with a slight decline, including the stock markets of France, Britain and Germany.
Market selling for the fourth consecutive day on Wednesday –
On March 17, heavy selling was record in the stock market. The BSE Sensex lost 562 points to 49,801.62 and the Nifty also closed down 189 points at 14,721.30. According to NSE provisional data, foreign institutional investors (FIIs) bought shares worth Rs 2,625.82 crore, while domestic institutional investors (DIIs) sold shares worth Rs 562.15 crore.
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