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Stock Market Crash: For the last few weeks, the stock market has been continuously losing money. After waiting for years, the portfolios of many investors which were good, got spoiled within a month. Most retail investors say that what they had earned in a year was lost in a matter of days. Such a decline is being seen for the first time after Covid.
Most retail investors are angry. If we look at the data of the last one month, the market is going through a very bad phase. The situation is such that investors are saying why Goddess Lakshmi is so angry with the stock market before Diwali?
Select midcap-smallcap stocks have fallen 50% in the last one month. In terms of indices, Sensex has lost almost 6500 points from its all-time high and Nifty has lost almost 2100 points. Nifty fell by more than 8 percent, while Sensex also fell by 8 percent. The defense index is down 26% from the peak. Whereas there has been a decline of 14% in auto sector and 13.5% in capital goods.
In the last one month Rs. loss of 40 lakh crores
The figures of how much loss has been incurred in the last one month are shocking. In this storm of selling, investors have suffered a loss of Rs 40 lakh crore in a month. The market cap of BSE on 27 September 2024 will be around Rs. Which fell to Rs 477 lakh crore on 25 October. It is worth Rs 437 lakh crore.
Now the deficit can also be seen in the form that the total GST collection in the financial year 2023-24 was Rs 20.18 lakh crore. In the last one month, investors have lost Rs. 40 lakh crore rupees have been lost in the market, whereas in the last month, double the amount that the government used to earn from GST in a year has been lost in the market.
Why is the market falling so much?
According to experts, profit booking is taking place after the big surge in the market. Therefore, one should be very careful while investing now. These are some important reasons for the decline in the market…
– Foreign investors are selling rapidly in the Indian market. They are withdrawing money from emerging markets like India and investing in China. At present, the market valuation of China is slightly cheaper than that of India, hence only in the month of October, foreign investors have withdrawn money from the market. Rs 1.08 lakh crore has been withdrawn.
– The second quarter results of many big companies have been poor, due to which the shares have fallen. Due to this the market sentiment is continuously deteriorating. Especially the results of auto sector, FMCG and some tech companies have given a big shock to the market.
In the last one and a half year, there has been a lot of rise in fundamental shares, but there has also been a lot of rise in some shares for which there was no specific reason for the rise. Especially a huge jump was seen in the shares of government companies, shares of railways, shares of new technology companies and shares of government banks. Especially, there was a huge rise in some stocks of midcap and smallcap segment, now such stocks are getting hit. There is a trend of selling especially in shares with expensive valuations.
According to experts, the market is in the selling zone, but the first support for Nifty is at 24000 points, after that there is strong support at 23800 points, from where the mood of the market can change.
