Stock Market: Mumbai: Strong employment data in the US dashed hopes of an early cut in interest rates by the Federal Reserve; the stock market fell to a 7-month low today due to all-round heavy selling at the local level by investors discouraged by the global decline. Investors lost Rs 12.62 lakh crore.
BSE’s 30-share sensitive index Sensex plunged 1048.90 points or 1.36 percent to 76,330.01 points, below the psychological level of 77 thousand points after seven months. Earlier on June 11, 2024, it was at 76,456.59 points. Also, Nifty of National Stock Exchange (NSE) fell by 345.55 points or 1.47 percent and closed at 23,085.95 points.ALSO READ: Share bazaar: Due to withdrawal of foreign funds, there was a decline in early trading in the stock market, the rupee also fell by 9 paise.
Due to this decline, the market capitalization of BSE stood at Rs 41705906.74 crore. The market capitalization on the last trading day was Rs 42967835.05 crore. In this way investors lost Rs 1261928.31 crore today.(Language)
These three reasons were responsible
Impact of America’s employment data
Employment data in America has come out very strong. 2.56 lakh jobs were added in America in December, which is more than the expectation of 1.65 lakh. Due to this, the unemployment rate in America reduced to 4.1%. This showed a strong US economy, but it reduced expectations of a rate cut by the Federal Reserve. This simply means that money from emerging markets like India will continue to flow into the American market. This is the reason why a negative atmosphere was created in the stock markets around the world.ALSO READ: Will the share market cross Rs 1 lakh in the year 2025, know what astrology says
continuous weakening of rupee
The Indian rupee is continuously weakening against the US dollar. It weakened by 27 paise to Rs 86.31 in early trade on Monday. Weakening of rupee means that the cost of exports will increase. This will increase the prices of essential commodities. Due to increasing inflation, the Reserve Bank may also postpone the decision to cut interest rates for a long time.ALSO READ: Huge fluctuations in stock market, rupee also at its all-time low
Disappointing quarterly results of Indian companies
Indian companies are releasing financial results for the December quarter of financial year 2024-25. Experts believe that the financial results of companies will remain weak in the December quarter also. This means that the valuation of the Indian market will also remain high.
