Table of Contents
New Delhi: The Indian stock market has experienced a significant crash in this week. The decline wipes out nearly Rs 15 lakh crore from Dalal Street investors’ pockets. In just five trading sessions, the Sensex has dropped around 4,000 points due to the combined impact of the Iran-Israel conflict and China’s new economic stimulus package.
Stock Market Yesterday
On Thursday, the Sensex fell by over 800 points, while the Nifty slipped close to 1 per cent, testing the key support level of 25,000. Foreign Institutional Investors (FIIs) have been withdrawing large sums from the Indian market, driven by concerns over high stock valuations and better investment opportunities in China. In fact, FIIs pulled out nearly Rs 32,000 crore in just four trading sessions, with Thursday’s withdrawal of Rs 15,243 crore marking the largest-ever single-day sell-off by foreign investors.
China’s New Economic Stimulus Package
The Chinese government’s stimulus package has encouraged a shift of funds from India to China, where stocks are currently cheaper. This has intensified the selling pressure on Indian equities, leading to a bearish short-term trend.
Iran-Israel War
The ongoing conflict in the Middle East has further added to market volatility. Iran recently launched 200 ballistic missiles toward Israel in retaliation for an Israeli air strike in Beirut, making foreign investors more cautious about emerging markets like India.
Despite the bearish trend, some domestic investors, including High Net-Worth Individuals (HNIs) and mutual funds, are holding cash reserves to buy into the market at lower levels. Mutual funds alone have cash reserves of Rs 1.86 lakh crore, the highest in five years.
Related News |
Stock Market Crash: Sensex Plunges 950 Points, Nifty Sinks Below 25,900 – Top Reasons
What's Ahead?
Looking ahead, market experts believe that the upcoming Q2 earnings reports and the results of assembly elections in Haryana and Jammu and Kashmir will play a key role in determining the market’s future direction. However, uncertainty around the global geopolitical situation and China’s economic policies may continue to influence investor sentiment.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
Related News |
Stock Market Crash: Investors Lose Rs 11 Lakh Crore After Sensex Drops 1800 Point – 5 Key Reasons