After several days of record highs, Indian stock markets on Wednesday saw heavy pressure for profit booking. Despite touching all-time highs in the morning trading session, Sensex and Nifty fell sharply. This steep decline was seen in the afternoon trading session. Nine lakh crore rupees of investors expecting profit were lost in just a few hours.
A strong start to the morning: Trading started on a brisk note in the stock markets and the Sensex soon surged 475.88 points to touch an all-time high of 71,913.07 points. Similarly, the Nifty also surged 139.9 points to hit a record high of 21,593 in early trading. In the last hours of trading, investors started booking profits after selling pressure and news related to Corona, due to which the stock market saw a big fall.
Their shares fell the most: The overall fall in the market was such that out of the 30 companies included in the Sensex, only HDFC Bank remained ahead. Shares of all remaining 29 companies closed lower. Tata Steel recorded the highest decline of 4.21 percent.
NTPC, Tata Motors, HCL Technologies, Mahindra & Mahindra, State Bank of India, Power Grid, Tech Mahindra, Larsen & Toubro and JSW Steel also declined. In the broader market, BSE smallcaps fell by 3.42 percent and midcaps by 3.12 percent. A total of 3,177 stocks declined while 658 stocks advanced and 86 stocks remained unchanged.
Decrease in market cap: According to the data, a day ago BSE’s market cap was Rs. 3,59,11,728.30 crores, which after this major decline to Rs. 3,49,79,477.94 crores. BSE has a market cap of Rs. 9,32,250.36 crore has decreased.
How much reduction in which area
utility 4.65 percent
Telecom 4.36 percent
Energy 4.33 percent
Service sector 4.20 percent
Commodities 3.51 percent
Metal 3.57 percent
Auto 2.30 percent
oil and gas: 2.30 percent
What the experts say
Market experts say that the market witnessed an aggressive rally in the last few trading sessions, due to which profit booking was already a possibility. Investors profited due to overvaluation of midcap and smallcap stocks. Nifty may continue to fall further. The biggest drop since October 26 has been witnessed in the stock market.
Main reasons for decline
1. Buying the stock market at highs
2. This created selling pressure on investors
3. Increase in crude oil prices
4. Sales also increased due to increasing cases of Corona