Investors Loss By 4 lakh Crore Rupees: After the decision of RBI to increase the repo rate and CRR, the trend of decline in the Indian stock market continues. So the global situation and the disappointment in the stock markets around the world are also the major reasons for the decline in the Indian markets. Foreign investors are selling continuously. This is the reason that with the fall in the stock market, the rupee also fell to the historical low of Rs 77.40 against the dollar.
4 lakh crore loss to investors
The Sensex fell 647.37 points and the Nifty fell 183.55 points, causing heavy losses to investors. At one time the Sensex had slipped below 54,000 points by falling 935 points, then the Nifty was also trading down 270 points, due to which the investors have suffered tremendous losses. Investors lost Rs 4 lakh crore in one stroke. Market capitalization of shares listed on BSE declined by about Rs 3.75 lakh crore to Rs 251 crore from Rs 255 lakh crore.
why the market fell
This fall is being seen in the stock market due to the big fall in the rupee against the dollar. The rupee fell to Rs 77.40 against the dollar, which is the lowest level of the rupee against the dollar. This weakness in the rupee suggests that foreign investors are withdrawing money from the stock market.
Foreign investors sell off
Foreign Portfolio Investors are continuously selling in the Indian stock market. In the first week of May 2022, foreign investors have withdrawn about Rs 6417 crore from the market. At the same time, so far in 2022, foreign investors have sold more than Rs 1.33,500 crore from the Indian markets.
Inflation became a cause for concern
Inflation is the biggest concern for the stock market. Due to this, while debt is getting expensive, on the other hand, the cost of companies is increasing, especially due to the rise in commodity prices. Due to inflation, profits of companies may decrease. Also, increasing the prices frequently will reduce the demand for the product, which will affect the financial results of the companies. In the coming quarter, the results of the companies are not going to be as per the expectation of the market, due to which foreign investors are selling.
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