The impact of the rising case of Corona in the country was seen on the stock markets on Monday. The Sensex fell 1145 points to close at 49744 points below the 50 thousand mark due to increasing panic among investors. The National Stock Exchange (NSE) Nifty also slipped 306 points to 14675.70.
Narendra Solanki, Head of Equity Research (Basic), Anand Rathi said, Indian markets also opened with a stable trend amidst the mix of Asian markets. However, markets came down in afternoon trading. Investors’ perception was affected by concerns over the rise in the case of Kovid-19 and the possibility of its economic impact being much higher than earlier estimates. Due to this, selling in the market became dominant. The market suffered a major fall due to the huge profits made in the IT, energy, metal, tech reality, auto etc. groups along with negative signals from the global level.

Sensex breaks 2,360 points in five days

16 February 52,104.17
17 February 51,703.83

18 February 51,324.69
19 February 50,889.76

22 February 49,744.32
Metal decline in all sectors except
metal 1.6%
FMCG-1.3%

Bank 1.6%
Auto-2.3%

Pharma-2.5%
Government Bank-2.6%

Realty -2.8%
IT -2.9%

Media-3.4%

Investors have
suffered a loss of more than Rs 5 lakh crore due to five consecutive days of decline in the market which has sunk in five days. The capitalization of listed companies on the BSE was Rs 2,05,80,302 crore at the close of market on February 16, which declined to Rs 2,00,26,498 crore on February 22. In this way, investors have lost Rs 553,804 crore in five days.

Market decline due to these four reasons

1. Increasing case of Kovid-19 The
market sentiment has been affected once again by the rising case of Corona in India. This raised concern among investors, leading to a sell-off.

2. Rising Inflation

Market experts say that there is a concern in the market as the 10-year bond yield increases. It can also be the cause of inflation. In the midst of the Corona crisis, rising prices of food and fuel threaten to affect demand.

3. Foreign investors reduced investment

Experts said the concern is rising foreign investment due to rising corona virus cases and high valuations. Even though FPI is buying in the Indian market, the pace of flow has slowed down.

4. Effect of global signals

Homecoming has been seen in investors by global cues. Other Asian markets on Monday included China’s Shanghai Composite, Hong Kong’s Hangseng and South Korea’s Cospi. European markets were also at a loss in early trade.

The market closed last Friday with a fall

The 30-share sensitive index Sensex of the BSE slipped 434.93 points on Friday, the last trading day of the week. The Sensex closed at 50,889.76 on Friday. The National Stock Exchange Nifty also fell 137 points to close at 14,981.75. Today the NIFTY NEXT 50 closed with a loss of 470.25 points, the Midcap 50 2.30%, the Nifty Bank 2.04% and the NIFTY FINANCIAL SERVICES index down 1.49%.

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