Share Market Update: After the US imposed 25% import duty on steel and aluminium, the Sensex fell by more than 1000 points in the Indian stock market on Tuesday. The result of this was that selling is being seen in every sector.
Share Market Crash: The Indian stock market is witnessing a decline for the fifth consecutive day on Tuesday. During the trading session, the Sensex fell by more than 1000 points. Similarly, the Nifty index is trading with a decline of more than 300 points. Due to the big decline in the stock market, weakness is being seen in the shares of all sectors including private banks and automobile sector. In the afternoon, all 30 stocks of Sensex were seen trading with a decline. Apart from this, the effect of negative sentiment in the global market was seen in the Indian market.
Big decline in Sensex and Nifty
Sensex was seen trading at 76,257.10 with a decline of 1,054 points. Similarly, Nifty 50 also broke and it fell 331 points to the level of 23,050. A huge decline is being seen in midcap and smallcap stocks. Nifty Midcap 100 fell by 3% and Nifty Smallcap 100 by 4%. In Tuesday’s trading session, the total market capitalization of companies listed on the BSE fell by Rs 9.68 lakh crore to Rs 408.88 lakh crore.
Why is the market falling?
The biggest reason for the decline in the market is the selling by foreign investors. Due to uncertainty in the US markets, foreign investors are continuously withdrawing money from the Indian markets. In fact, the possibility of trade war has increased due to the imposition of 25% import duty on steel and aluminum by the US. Its effect is being seen directly in the stock market. Apart from this, the rupee reached its lowest level ever due to the strength of the US dollar.
Which stocks were most affected?
Power Grid, Zomato, Tata Motors, UltraTech Cement, and Bajaj Finserv recorded early declines. Among the 30 Sensex stocks, Zomato’s stock saw the biggest decline of 5 percent. Aion Motors’ stock fell nearly 7 percent as its quarterly results were weaker than expected. However, Nykaa’s stock rose 3% in the meantime as the company’s net profit rose 61% to Rs 26.12 crore.
These sectors are most affected
Amidst the ongoing decline in the stock market, Nifty Auto, Media, Pharma, Public Sector Bank, Health Care and Oil & Gas sectors are witnessing a decline of one to one and a half percent. Market experts say that large-cap companies have performed better than small companies, midcap and smallcap.
How will the market be in the future?
Akash Shah, equity research analyst at Choice Broking, said that the resistance of Nifty is at 23,460 points. If it crosses this level, then Nifty can rise to 23,550 and 23,700. If it breaks, it can fall to 23,000. Meanwhile, the statement to be given by Federal Reserve (Fed) Chairman Jerome Powell in the US Senate will also affect the market. He will give his views on inflation and interest rates.