₹16.97 Lakh Crore Wiped Off Indian Investors’ Wealth in 5 Days
The Indian equity market has been going through a tumultuous phase in recent days, with the benchmark Sensex plummeting to a two-week low. The markets have been reeling under pressure, and investors have been bearing the brunt of the crash. In the last five days, the Sensex has slumped by a staggering 2,290.21 points, or 2.91%, wiping off a whopping ₹16.97 lakh crore from investors’ wealth.
On Tuesday alone, the Sensex dropped 1,018.20 points, or 1.32%, to settle at 76,293.60, which is its lowest level in two weeks. This means that investors’ wealth was eroded by a massive ₹9,29,651.16 crore on Tuesday.
The relentless selling pressure has been attributed to various factors, including concerns over the rising crude oil prices, ongoing trade tensions between the US and China, and the ongoing global economic uncertainty. The market has been volatile, with investors growing increasingly cautious and opting to take a step back.
The impact of the market crash has been felt across the board, with all the 30 constituents of the Sensex ending in the red. The Nifty 50 index also plummeted by 1.23% to settle at 22,764.20. The broader markets also witnessed a sharp decline, with the Nifty Midcap 100 and Nifty Smallcap 100 indices tumbling by 2.15% and 2.43%, respectively.
The market’s downtrend has been fueled by a series of negative factors, including the ongoing uncertainty over the US-China trade talks, the rising tensions between the two nations, and the ongoing economic uncertainty in the global economy. The market has also been impacted by the Reserve Bank of India’s (RBI) decision to keep interest rates unchanged, which has led to a decline in the yields of government securities.
The market’s decline has also been attributed to the rising crude oil prices, which have been driven by the ongoing tensions between the US and Iran. The prices of crude oil have been steadily increasing, and this has led to a spike in the cost of living for consumers. The Indian rupee has also been under pressure, weakening to a two-week low against the US dollar.
The market’s decline has also led to a decline in the value of the rupee, which has weakened to a two-week low against the US dollar. The rupee has been under pressure due to the rising crude oil prices and the ongoing economic uncertainty in the global economy.
Despite the market’s decline, experts believe that the Indian economy is well-positioned to withstand the challenges posed by the global economy. The Indian economy has been growing steadily, and the country has been making significant strides in terms of economic reforms. The government has been taking steps to boost the economy, including reducing the corporate tax rate and increasing the allocation for infrastructure development.
The market’s decline has also led to a decline in the value of the rupee, which has weakened to a two-week low against the US dollar. The rupee has been under pressure due to the rising crude oil prices and the ongoing economic uncertainty in the global economy.
In conclusion, the Indian equity market has been going through a tumultuous phase in recent days, with the benchmark Sensex plummeting to a two-week low. The markets have been reeling under pressure, and investors have been bearing the brunt of the crash. Despite the market’s decline, experts believe that the Indian economy is well-positioned to withstand the challenges posed by the global economy.
Source:
https://repository.inshorts.com/articles/en/PTI/821eb0f8-c9cb-4476-8a89-0f8f7f85a7d0
