new Delhi. The domestic stock market closed with a sharp decline on Tuesday due to negative signals from the domestic economy and foreign markets. The major index has seen a decline of around 2% due to sharp decline in banking stocks. In Tuesday's trade, the Sensex lost 661 points to close at 36033 and the Nifty fell 195 points to 10607. Private banks suffered the most during the business. The pharma sector was the only major sector to close.
In today's trade, the index of private banks closed down by 3.27 per cent. Public sector banks declined by 3.02 percent. The entire banking sector index closed down 3.08 percent. The auto sector index fell 2.52 percent, the metal sector index fell 2.54 percent. With this, the power sector index closed 1.76 percent down, the realty sector index fell 1.68 percent and the IT sector index fell 1.14 percent. Today, the pharma sector index closed up 0.41 percent.
The pressure has increased with the news of increasing tension between the US and China in foreign markets. The US has completely rejected China's claims in the South China Ocean. This has led to apprehension of increasing tension between China and the US. Investors are assuming that if this tension turns into a trade war, the difficulties for economies will increase significantly.
At the same time, due to increasing cases of corona virus across the world, there is an increased possibility of business ban once again. Countries around the world have once again indicated further tightening in economic and social activities. Australia Japan, Hong Kong has once again announced strict rules in many areas. At the same time, many states and cities in India have also issued new rules regarding restrictions. This has led to the possibility of further delays in recovery in economic activity. Which has a bad impact on investors' sentiments.
Along with this, many recent reports are also being feared that it may take longer than previous estimates for many sectors to reach the pre-epidemic. Traffic in the domestic aviation sector is expected to be half of what it was last year. At the same time, the auto sector estimates that it may take a long time of 3-4 years to recover.
European markets have a declining trend in Tuesday's trade. At the close of the domestic market, France's CAC 40 was down 1.56 per cent, Germany's DAX 1.34 per cent and UK's FTSE 100 fell 0.34 per cent. Among the Asian markets, Hong Kong's Heng Seng closed down 1.56 per cent, Japana's Nikkei 0.87 per cent and China's Shanghai Composite 0.83 per cent.
This post was published on July 14, 2020 4:19 pm
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