Market NewsInvestors lost 4 lakh crores in one stroke, know why the market...

Investors lost 4 lakh crores in one stroke, know why the market slipped

On Monday morning the market opened with great weakness. Due to this, investors lost Rs 3.97 lakh crore in a few minutes

The beginning of the week was not good for the stock investors. Investors lost Rs 4 lakh crore in a single stroke due to the fall in the market on Monday. In the morning the market opened with a lot of weakness. Due to this, investors lost Rs 3.97 lakh crore in a few minutes.

The market capitalization of BSE was Rs 276.96 lakh crore on Friday last week. It came down to Rs 272.98 lakh crore on Monday morning. The special thing is that this fall was seen from Tokyo to Mumbai on Monday. However, the fall in the market was foreseen. But, such a big drop was not expected.

The main reasons for this decline

Federal Reserve statement

US central bank Federal Reserve Chairman Jerome Powell has made it clear that its focus will remain on controlling inflation. This means that for now the trend of increasing interest rates in America will continue.

Markets expected the central bank to remain focused on monetary policy at the pace of Fed Chairman Jerome Powell at the Jackson Hole Symposium. But, Powell has indicated a tougher stance than expected. He has clearly said that the strictness of the central bank may cause some problems for families and companies.

It is believed that the trend of increasing interest rates in America will continue. Some experts have said that in the next meeting of the Federal Reserve’s FOMC, it may be announced to increase the interest rate by 0.75 percent. The US central bank has raised interest rates by 2.25 per cent since March this year.

Rupee Depreciation

The rupee declined against the dollar in early trade on Monday. It fell 26 paise to 80.10 level. Weakness was also seen in the currencies of other countries. This is because of the strengthening of the dollar. Dollar strengthened by Jerome Powell’s statement. The rupee has fallen around 5 per cent this year. If the dollar continues to strengthen, the pressure on the rupee may increase.

Selling Foreign Funds

Foreign funds are again seen selling in the Indian market. On Friday, he sold shares worth Rs 51.12 crore. However, earlier his buying was seen in the domestic stock market. They have invested Rs 49,254 crore in the domestic market till 26th of this month.

Technical Weakness

There are signs of technical weakness in the stock market. Analysts say that if the Nifty closes below the 20-day SMA of 17,418, then the weakness in the market will be confirmed. After the fall today, Nifty has gone below this level. It means there is weakness in the market.

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