Indian Stock Market Crash Today: Indian stock market is Closing with 1000 to 1200 Sensex points from last 4 days. Investors are only seeing red paragraph in their stock market dashboard. Due to several factors and Global events, the Indian stock market is directly affecting where investors have lost approximately 13 lakh crore.
So if you have also interest in stock markets then you should check the latest updates of Sensex and Nifty scores including how much points are decreasing and what are the main factor which are directly affecting investor. We are sharing with you top 5 reasons why Indian stock markets is seeing red which will help you to prepare strategy for the upcoming days to survive in the market.
Indian markets in red in December 2024
The Indian stock market closed in the red on December 17th, 18th and 19th, 2024. Both the Sensex and Nifty indices fell due to selling pressure in various sectors, including PSU banks, auto, IT, financial services, pharma, FMCG, metals, and realty.
This decline was attributed to concerns about potential rate hikes by the US Federal Reserve and other central banks. On Thursday, December 19, the Indian stock market saw a sharp drop, with the Sensex falling nearly 1,200 points to 79,020.08 and the Nifty slipping to 23,870.
The Sensex opened lower at 79,029.03, compared to its previous close of 80,182.20, while the Nifty started at 23,877.15. The total value of BSE-listed companies fell from ₹452.6 lakh crore in the previous session to ₹446.5 lakh crore, resulting in a loss of ₹6 lakh crore within minutes of trading. Over the past four days, the market capitalization has declined significantly from ₹459.4 lakh crore on December 13.
13 Lakh Crore has be dropped
The continuous fall in the market over the last four sessions has had a severe impact on investors, with total losses amounting to ₹13 lakh crore. This steep decline has raised concerns about market stability and investor confidence.
The significant erosion in market capitalization has affected the overall wealth of investors, potentially influencing future investment decisions and creating a cautious sentiment in the market.
Reason of Indian Stock Market Crash Today
Indian stock markets are red nowadays due to global events in activities including American Reserve Bank cut interest rates by 25 basis points and will cut again in upcoming days, The outflow of Flls, Fall in rupees, Global economical challenges, Weak earnings of corporates in India etc. Check detailed description of the factors which are affecting Indian stock markets from last 2 to 3 days.
Impact of the US Federal Reserve
The US Federal Reserve reduced interest rates slightly by 25 points. However, investors are disappointed globally as two more cuts will be announced until the end of 2025, whereas investors were expecting more. This announcement led to a drop in global markets, a strong US dollar, and selling pressure in India.
Foreign Investor Selling
Foreign investors have been selling Indian stocks heavily, pulling out over ₹8,000 crore in three days.As the Rates of dollar are continuously increasing, so investors are moving with USA companies where they can get higher benefits in the stock market. Apart from this, Indian Ministries are still asking companies to follow all the rules and regulations which are reducing interest of the investors from the market
Weak Indian Rupee
The Indian rupee fell to a historic low of 85.3 against the US dollar. A weaker rupee reduces profits for foreign investors and increases import costs, which can lead to higher inflation in India. As much the Indian rupee decrease, the impacts of the red graphs will automatically increase and impact thousands of investors who are investing in stocks from their saving.
Economic and Corporate Challenges
India is facing economic challenges, with the trade deficit at a record high and GDP growth slowing down. On top of this, company earnings have been weak in recent quarters, and a major recovery is not expected before the end of the financial year. All these factors combined are keeping the markets unstable.
However these changes are eventual and will normal soon according to the stability in the Global stock market.
