Investors lost ₹ 5 lakh crore, Nifty came down to 16,000
The stock market started with gains on Wednesday. However, as the day progressed, it started declining and finally closed in the red mark. Besides FMCG, IT stocks, heavy weighting stocks like Reliance Industries and Larsen & Toubro saw selling. One of the main reasons behind the decline in the Indian market was the weakness in the global markets. Global markets are waiting for some important economic data. America is going to release data related to inflation for April late in the evening. At the same time, China’s factory and consumer prices have come above estimates for this month. The Sensex and Nifty had lost more than 1 per cent during the day’s trading. Also today Nifty slipped below 16,000 for the first time since March 9. During this, investors today suffered a loss of about Rs 5 lakh crore. At the end of trading, the Sensex closed at 54,088.39, down 276.46 points (0.5196). On the other hand, Nifty closed at 16,196.10 with a decline of 43.95 points (0.27%).
- Retail Inflation Data America is going to release the retail inflation data for April late evening, which investors are eagerly waiting for at the global level. Meanwhile, India will release its April retail inflation data tomorrow i.e. on Thursday. Investors can make their strategy regarding the market after these data.
- Selling data by foreign investors shows that in 2022 so far, foreign investors have pulled out Rs 1.41,089 crore from the Indian stock market. At the same time, before this, he had withdrawn Rs 38,521 crore in the last three months of the year 2021. An increase in the value of the dollar is also being seen in the emerging markets. India, which has a premium valuation among emerging markets, is currently on the target of selling by foreign investors. In terms of valuations, the Indian benchmark Nifty 50 is still trading at 19.4 times its 12-month forward P/E, which is equal to its 10-year average. Its price to book value is 3 times. Which is a 16% premium over its historical average.
- Strictness in Monetary Policy Ukraine-Russia war is showing no signs of ending. In such a situation, there is a shortage in the supply of many goods, due to which the increased prices of food and fuel around the world have increased inflation. Apart from this, due to Corona in China, factories in many areas are not working with normal capacity. This has also increased the pressure on the supply. Due to these reasons, many developed countries including America have raised interest rates in the last few months, which has reduced money in the market. RBI had announced a 0.40 per cent hike in its policy rate last week with the intention of curbing inflation. All these aspects have played an important role in intensifying the sell-off in the stock market.
