Investors Loss: Due to the huge fall in the Indian stock market on Thursday due to global reasons, investors have lost Rs 5 lakh crore. The index of the Mumbai Stock Exchange fell by more than 1000 points, while the Nifty fell below the figure of 16,000 with a fall of 300 points. Due to this fall in the stock market, investors have lost about Rs 5 lakh crore.
The impact of the fall in the US market
The market cap of shares listed on BSE was close to Rs 256 lakh crore when the market closed on Wednesday, which has come down to Rs 251 lakh crore due to heavy selling in the market on Thursday. The investors of the Indian stock market have had to bear the brunt of the fall in the US stock market in Wednesday’s trading session. Due to poor financial results due to rising inflation of American companies, there was a fall of 3 to 4 percent in the US stock market index.
Why did the Indian market fall?
Actually, retail companies of America have presented very bad financial results. American retail company Target’s poor corporate results led to a 25 percent fall in its stock, which spoiled the sentiment of the US market. Due to this the fear has started deepening that the main reason for this is rising inflation. To deal with inflation, the US Fed Reserve can increase interest rates again. If this happens, then foreign investors can sell more in the Indian markets.
Rupee continues to fall
Rupee continues to depreciate against dollar. On Thursday, the rupee fell to Rs 77.67 against a dollar. There is also uneasiness in the market. Due to this imports are becoming increasingly expensive. The result of this is that companies have started raising prices. Due to this, which will affect the domestic demand. The fiscal deficit of the government may also increase. Foreign investors have so far withdrawn Rs 30,000 crore in the month of May. So far in 2022, foreign investors have withdrawn Rs 1.57 lakh crore from the Indian markets.