Slide in stock market continues; Nifty hits 52 week low
The Sensex and Nifty closed the fourth trading day of the week with a sharp fall on Thursday. The Sensex closed 1600 points below the day’s high. It closed at 51,495.79, down 1045.60 points or 1.99%. Nifty has also made a new 52-week low. It saw a decline of 331.55 points or 2.11%. It closed at 15,360.60. The biggest fall was in metal, IT and bank stocks. Whereas in the morning the market opened with a gain of more than 500 points.
BSE Midcap closed at 21,441.40, down 513.88 or 2.34%. BSE’s smallcap closed at 24,346.96, down 718.99 or 2.87%.
All sectoral indices of Nifty declined
Today all 11 sectoral indices of Nifty declined. The biggest metal index declined by 5.24%. This was followed by a decline of 3.20% in the media. On the other hand, banks, auto, financial services, IT, PSU banks, private banks and realty fell more than 2%. Whereas pharma declined by 1.59%. While the FMCG index remained flat.
Reasons for the fall in the market
1. Increase the interest rate of the US Federal Reserve
The US Federal Reserve has raised interest rates to control rising inflation. The rate has been increased by 75 basis points i.e. 0.75%. The rate hike by the US Federal Reserve is the biggest hike in the interest rate since 1994. The Fed has taken this decision in view of the wildly rising inflation rate in America. Consumer price inflation in the US has reached the highest level since 1981 and stood at 8.6%.
2. Selling shares of foreign investors
Foreign investors (FIIs) are selling for the ninth consecutive month due to the fall in the global market. They have sold shares worth over Rs 2.2 lakh crore in the last five months. At the same time, in June this month, so far he has sold shares worth more than Rs 31,000 crore.
3. Bank of England’s fear of raising interest rates
In the UK, the rate of inflation is increasing continuously and due to this, the Bank of England can increase the interest rate for the fifth time in a row to overcome the problems being faced by the people. If England raises the interest rate by 25 basis points in June, the interest rate will rise to a 13-year high of 1.25%. This is affecting the market.
