Stock markets tumble, investors lose Rs 6 lakh crore in morning trade
Sensex and Nifty opened sharply lower on Monday as Middle East tensions and rising oil prices hit sentiment.
The stock market saw major turbulence on the first trading day of the week. Shares fell sharply as soon as the market opened on Monday, wiping out about Rs 6 lakh crore of investor wealth. The market had been trading in the red for the past few weeks, and the same trend continued on Monday.
The Sensex opened lower at 73,734.83 points on Monday. By 9:45 am, it had fallen 888.18 points, down 1.20 percent, to trade at 73,182.42 points. The 50-share Nifty also opened lower at 23,064 points. At 9:46 am, it was trading at 22,869.95 points, down 270.55 points or 1.17 percent.
As soon as the market opened, only two of the Sensex's 30 stocks were trading higher, while the remaining 28 were in the red. TCS shares rose the most, up 0.33 percent, while Bajaj Finance shares fell the most, down 1.11 percent. Rising tension in West Asia, the confrontation between the United States and Iran, and a surge in crude oil prices are being cited as reasons for this sharp fall in the domestic stock market.
According to data, the total market capitalisation of companies listed on the BSE fell by about Rs 6 lakh crore to around Rs 476 lakh crore, meaning investors suffered a loss of that magnitude.
Several reasons are being cited for the fall in the market. The conflict in West Asia is continuing to escalate, directly affecting oil prices, which have risen sharply. In addition, US bond yields have also risen significantly. Amid all this, the Indian rupee has weakened, and foreign investors have been continuously selling in the Indian market. The combination of these five factors put pressure on the market, causing investors heavy losses in early trade itself.
