The increase in interest rates is not digesting the share market, the color of Sensex-Nifty has gone off

Central banks around the world are aggressively raising interest rates to contain inflation that has reached a decade-high level. The stock market is suffering the most because of this. After the latest episode of rate hike, the selling of investors is not taking the name of stopping. As soon as the market opened on Friday, the last day of the week, both BSE Sensex and NSE Nifty fell face to face.

Sensex drops 800 points in pre-open

The pre-open session itself was indicating the bad condition of the market. In the pre-open session, the Sensex was down by about 800 points. SGX Nifty was also in a big fall of 1.83 per cent in Singapore. As soon as the business started, the Sensex fell about 750 points and came down from the level of 55 thousand points. Nifty also came down 290 points as soon as it opened. At 09:20 am, the Sensex had fallen over 900 points and was trading below 54,800 points. Nifty was trading slightly above 16,400 points with a fall of more than 260 points.

By noon the market fell so much

As the business progressed, the market kept falling further. By 11:20 pm, the market had broken up to 2 per cent. The Sensex had fallen more than 1000 points and had come near 54,650 points. Nifty was trading near 16,350 points with a loss of more than 325 points. In fact, the market is afraid that interest rates may increase rapidly in the coming time. Because of this, investors are withdrawing money from the stock market. There is also pressure from weak global trend on the market.

Heavy loss even after recovery

In the afternoon trade, the market recovered to some extent, but could not succeed in bridging the gap of huge decline. When the market closed in the evening, the Sensex was in a loss of 866.65 points or 1.56 per cent. BSE Sensex closed at 54,835.58 points. Similarly, NSE Nifty closed at 16,411.25 with a loss of 271.40 points or 1.63 per cent.

Yesterday there was huge turmoil in the market

Earlier on Thursday, there was huge volatility in the market.  On Thursday, the Sensex had climbed nearly 900 points to reach 56,566.80 points in the day’s trading.  After noon the market took a dive.  Before the closure, the market had also gone into the red zone at one time and the Sensex fell by 55,613.82 points.  When the trading ended, the Sensex closed at 55,702.33 points, up 33.20 points (0.06 per cent) marginally.  Nifty also closed at 16,682.65 points with a gain of just 5.05 points.

All central banks raising interest rates

The Reserve Bank announced a sudden increase in the repo rate by holding a press conference on Wednesday afternoon this week.  Interest rates have been changed in India for the first time since August 2018.  Till now the repo rate was at a historic low of 4 per cent, but now it has increased to 4.40 per cent.  After this, the US Central Bank Federal Reserve increased the policy rate by 0.50 percent.  All central banks including Bank of Japan, Bank of England are increasing rates due to inflation.  Due to this, investors are continuously selling.

This week was bad for the market

After the announcement of RBI on Wednesday, there was a big fall of 1,307 points in the Sensex and 392 in the Nifty.  The stock market was closed on Tuesday on the occasion of Akshaya Tritiya and Eid.  On Monday, the first day of the week, the Sensex fell 84.88 points, or 0.15 per cent, to 56,975.99 and the NSE Nifty slipped 33.45 points (0.20 per cent) to 17,069.10.  Overall this has proved to be a bad week for the stock market.