Indian Market crashed
Sensex has shown a major dip of 900 points, falling below the historic
71,000 mark on Wednesday. While Nifty drops close to 21,100, it has also a major
dip of approx. 300 points and same to the bank Nifty has fallen 425
points and currently stands at 47,445.
The Indian
stock market had a lucky month in December 2023, but on Wednesday Indian
Market crashed, Sensex reached under the 71,000 mark after crossing the
historic threshold earlier this month.
BSE Sensex
is currently sitting below the 70,500 mark, with all major stocks like TCS and
Hindustan Unilever showing a significant decline today.
Not just the Sensex, but NSE Nifty also dropped below the 21,200 mark on Wednesday after a
record-breaking run in the Indian stock market. Both Nifty and Sensex are
recording this major dip just two weeks after hitting their historic high.
Reason Behind the Indian Market Crashed
Bank, metal, and auto stocks in India remained in the red today, showing a gradual decline throughout the market session on Wednesday. Major IT and bank
stocks, apart from HDFC, also recorded marginal declines on December 20.
Another
reason is the rise in COVID-19 cases across India once again, threatening the
markets once again since the lockdown of March 2020. The rise in Covid cases in
India is due to the new COVID sub-variant JN.1, first detected in Kerala.
Another reason behind this steep decline in Sensex points is the
Foreign institutional investors' (FIIs) data. FII majorly offloaded Indian
shares during the last market session, selling around ₹601.52 crore. Meanwhile, Domestic
Institutional Investors (DII) only ended up buying ₹294 crore.
While Sensex is showing a steep decline now, brokerage HDFC
Securities had predicted that the early months of 2024 will observe an eight to
ten percent spike in Nifty and Sensex, touching a new market high soon.
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