look news india
There has been a recession in the Indian stock market for some time. Money has been pouring into the stock market for weeks. After waiting for years, the portfolios of many investors were green and within a month all of them have gone into the red zone. Most of the retail investors say that the earnings made in a year are lost within a few days. For the first time after the Corona period, a decrease in this parameter is being seen.
Select midcap-smallcap stocks have declined by 50 percent in the last one month. Talking about indices, Sensex has fallen by about 6500 points from all time high and Nifty by about 2100 points. Nifty fell more than 8 percent. Whereas the Sensex has slipped by 8 percent. The defense index as a sector has fallen 26 percent from the peak. A decline of 14 percent has been recorded in the auto sector and 13.5 percent in capital goods.
The figures of how much loss has been incurred in the last one month are shocking. In this storm of selling, investors have lost Rs 40 lakh crore every month. The market cap of BSE was around Rs 477 lakh crore on 27 September 2024, which has fallen to Rs 437 lakh crore on 25 October. Now the loss can also be seen in this way that the total GST collection in the financial year 2023-24 was Rs 20.18 lakh crore. Whereas in the last one month, Rs 40 lakh crore of investors have been lost in the market. In this way, the government has suffered a loss of double the revenue it received from GST in a month.
Quarterly results of many big companies were bad, due to which their shares fell. Due to this the market sentiment is continuously deteriorating. Especially the auto sector, FMCC and some tech companies have given a big blow to the market.
In the last one and a half year, there has been a good rise in the fundamental stocks, but in this crowd, there were some stocks which had a lot of rise and then they did not have any special reason for the rise. Especially a lot of rise was seen in the shares of government companies, shares of railways, shares of new technology companies and shares of government banks. Which does not match in development. Some stocks in mid-cap and small-cap segments rose. Now shares are falling. Stocks, especially those with expensive valuations, are on sale, with such stocks falling as much as 50 per cent from their highs.
Where will the recession stop?
According to the information, the market is in the selling zone, but the first support for Nifty is at 24000 points, after which the strong support is at 23800 points, so the mood of the market may change.
