#StockMarketCrash: Investors lose Rs. 15 lakh crore in 5 days
The Nifty 50 and Sensex ended the day in the red for the fifth consecutive session on Wednesday. The Nifty 50 closed at 19,122.15, down 160 points, or 0.83%, while the Sensex finished at 64,049.06, down 523 points, or 0.81%. Over the past five days, investors have seen losses reaching Rs. 15 lakh crore. Here are some probable reasons why the market is falling.
Rising US Treasury yields
One of the primary reasons behind the market's decline is the surge in US Treasury yields. While there was a brief retreat from the 16-year high levels, renewed interest from investors in the US bond market triggered profit-taking in India's stock market. This is why the stock market drifted into the red territory after a gap-up opening today.
Middle East tensions and rising inflation
The ongoing conflict between Israel and Hamas has generated uncertainty among global stock market investors. Moreover, surging crude oil prices due to Middle East tensions pose a challenge for the Indian market, as they could lead to heightened inflation in India. Given that the country imports approximately 85% of its crude oil needs, rising prices pose a significant risk to inflation and India's overall economy.
Other factors affecting Indian stock market
The US dollar index's resurgence and its breach of the Rs. 106 psychological barrier have also spurred profit-taking in the Indian stock market. Foreign Institutional Investors (FIIs) have consistently sold off Indian equities as the US dollar strengthens. Additionally, lackluster Q2 earnings from major firms like DMart, TCS, and Infosys have dampened investor enthusiasm, while robust results from ICICI Bank and Kotak Mahindra Bank failed to excite investors as much as Q1 earnings did.
