Business
oi-Ashish Rana
The Indian stock market went through a sharp fall on Tuesday after loosing all its gains from earlier in the day. According to some stock market experts, rising US bond yields, higher oil prices and tension in the Middle East made investors to think about much.
The Indian stock market sharply fell Tuesday, with Sensex dropping 778 points to 74,003 and Nifty down 279 points to 23,118, losing Rs 9 lakh crore. Rising US bond yields, higher oil prices, Middle East tensions, and fears of a US Fed rate hike contributed to the decline.
The market saw a huge drop when Sensex fell nearly 1,430 points from its day’s high of 75,436. It ended 778 points lower at 74,003 in the day end. The Nifty also dropped around 279 points to closing at 23,118.
The fall was almost more than Rs 9 lakh crore from the total value of BSE-listed companies, bringing their market capitalisation down to Rs 472 lakh crore.
BEL Falls Over 6 Percent, Broader Market Hit Hard
Bharat Electronics (BEL) was one of the biggest losers in the market falling more than 6 percent. IndiGo, Titan, Bajaj Finserv, Adani Ports, M&M, SBI, Trent and many other stocks dropped between 2 and 4 percent.
The Nifty Smallcap 100 and Nifty Midcap 100 also fell more than 2 percent each. Nifty Realty was hit even harder, losing over 4 percent.
However, IT stocks moved in the opposite direction. HCLTech, Infosys, Tech Mahindra and TCS gained up to 4 percent.
5 Reasons Why Sensex And Nifty Fell
1. US bond yields cross 5%: The 10-year US Treasury yield crossed 5% for the first time since 2023. Higher bond yields can make stocks less attractive to investors.
2. Fear of a US Fed rate hike: Investors are worried that the US Federal Reserve could raise interest rates as inflation remains above its 2% target.
3. Iran-US tensions: Fresh tensions involving Iran, the US and Houthi forces in Yemen have increased uncertainty across global markets.
4. Oil prices jump above $108: Brent crude crossed $108 per barrel, while WTI crude moved close to $104. Higher oil prices are a major concern for India because the country depends heavily on imported crude.
5. IPO boom pulls investor money: Eleven IPOs are opening for subscription this week and aim to raise a combined Rs 24,574 crore. Strong interest in new issues may be pulling some money away from the secondary market.
With oil prices rising and the US Federal Reserve decision approaching, global developments are likely to remain important for Dalal Street in the near term.
