Fear of trade war created chaos in the stock market!
A big decline was seen in the stock market on Tuesday, the second day of the trading week. On one hand, the Sensex fell by more than a thousand points, while the Nifty closed below 23,100. The reason for the fall in the indian equity index for the fifth consecutive session is the heavy selling of banking, auto, metal and IT stocks. Apart from this, there is pressure on investors regarding the fall in rupee and US trade policy.
Stock market closed in red
On Tuesday, the BSE Sensex fell 1,018 points or 1.32 percent to 76,293. At the same time, the NSE Nifty closed 310 points or 1.32 percent down at 23,071. Today all major indices closed in the red with the smallcap and midcap index falling 3.45 percent and 3 percent respectively. During this period, the total market capital of all the companies listed on BSE fell by Rs 9.3 lakh crore to Rs 408.52 lakh crore.
The biggest decline in their shares
The shares of hdfc bank, icici bank and kotak mahindra bank suffered the most. They fell by up to 2.1 percent. These shares jointly contributed 235 points to the total decline in the Sensex.
Why did the stock market fall?
There are many major reasons behind the decline in the stock market today, one of which is US President Donald Trump's imposition of a 25 percent tariff on steel and aluminum imports as this further increased the risk of trade war. Apart from this, US Federal Reserve chief Jerome Powell will testify before the Senate banking Committee today on february 11 and the house Financial services Panel (Finance Committee) tomorrow on february 12, due to which investors are under pressure.
In fact, keeping in mind the rising inflation in the country, the US Federal Reserve did not make any change in the interest rates in its monetary policy and maintained it at 4.25-4.5 percent, while trump wanted the interest rate to be reduced. There is an atmosphere of tension between him and Powell regarding this. Meanwhile, Powell will present his report on the economic outlook and recent monetary policies in front of the MPs in Congress, after which the round of questions and answers will begin. Vinod Nair, Research Head of Geojit Financial services, while talking to Economic Times, said, meanwhile investors are expecting relief from possible fluctuations in the market from PM Modi's US visit, while all eyes will also be on Powell's report in the US parliament today.
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