look news india
Stock Market Closing: Amid widespread selling in the stock market, the Sensex today fell 1219.23 points to a low of 80981.93. As a result, investors have lost Rs 5.09 lakh crore of capital. The Nifty also fell by more than 300 points.
Sensex closed 1017.23 points down at 81183.93 and Nifty closed 292.95 points down at 24852.15. Midcap index fell 1.41 percent with gap down in stocks. Among sectoral indices, PSU index fell 2.48 percent, Small Cap 0.96 percent, Telecom 3.23 percent, Power 1.37 percent, Auto 1.30 percent, Technology 1.22 percent.
Market breadth negative
Out of 4034 stocks traded on BSE, 1406 stocks rose and 2541 fell. 289 stocks hit year's highest level and 36 stocks hit year's lowest level. 297 stocks hit upper circuit and 248 stocks hit lower circuit. In the Sensex pack, 4 stocks closed in the green zone and all 26 stocks closed in the red zone. Which indicates a cautious stance with the market remaining negative.
Factors responsible for today's fall in the stock market
1. Rajnath Singh declared: Defence Minister Rajnath Singh has instructed the Indian Army to remain well-armed and keep a close watch on neighbouring countries. Many speculations are being made on the issue of security.
2. FPI Regulations: Foreign investors (FPIs) will have to follow new SEBI rules to invest in India. Today was the last day for the deadline to publish the list of beneficial owners. As a result, FPIs that do not disclose this list will no longer be able to invest in India.
3. Fed rate cut: The US is scheduled to release a report on August employment data this Friday. The Fed is then expected to cut interest rates by 25 to 50 basis points on September 18. As a result, investors, especially foreign investors, have adopted a wait-and-watch policy.
4. Overvalued Market: Due to the ongoing boom in the Indian stock market for the last few days, the market has become overvalued. Many stocks have increased their PE ratio above 50. Due to which correction and profit booking can be seen in the market ,
5. Impact on Global Market: Due to two votes on Fed rate cuts, there was universal selling pressure in Asian and European markets. Which has also affected the local market.