Categories: Business

stock market crash due to weak global cues

Stock market crash

new Delhi. Domestic stock markets closed with a sharp decline in the first trading session of the week due to weak signals from foreign markets. The pressure on the markets has increased due to the intensification of the verbal war between China and the US in the midst of the Corona crisis. At the same time, the quarterly results of the leading domestic companies have not been as expected, due to which there is a sharp sell-off in the stocks of companies. In Monday's trade, the Sensex has fallen by 31 points to 31715 and the Nifty has fallen by 566 points to 9294.

Foreign signs were the main reason for the sharp decline in the domestic market. There has been apprehension in foreign markets that trade war between US and China may be resumed amidst Corona crisis which will shock economies around the world trying to recover. US Secretary of State Mike Pompeo claimed on Sunday that he had strong evidence that the corona virus had originated from China's lab. On the other hand, the Chinese government media has demanded the US to put forward the evidence, calling this claim false. Today, markets in Asia and Europe have fallen by more than 2 percent. At the same time, there are signs of a US market opening with a fall.

The possibility of further market fluctuations among investors became more than ever. Fear index, which shows the fear of market fluctuations, has seen an increase of up to 29 percent. The rise in the index means that there is growing fear among investors about further volatility.

In today's business, except for the pharma sector, all other sectors have seen a sharp decline in the index. Banking index 8.32 per cent, Financial Services Index 8.43 per cent, Metal Sector Index 7.86 per cent, Auto Sector Index 7.21 per cent, IT Sector Index 4.64 per cent and FMCG sector index closed down by 3.73 per cent. On the other hand, the pharma sector index closed up 0.4 per cent.

On the other hand, the results of Reliance Industries, Hindustan Unilever and Tech Mahindra have not been as expected, due to which the sharp fall in these stocks has been seen in the major index. Tech Mahindra closed down 8 per cent, HUL 5.16 per cent and Reliance 2.16 per cent today. The 28 stocks in the Sensex closed down, of which 19 stocks declined more than 5 per cent.

This post was published on May 4, 2020 8:05 pm

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