New Delhi: The beginning of the week was not good for the stock market. The market on Monday opened on a negative note. The Sensex plunged 1,066.36 points to 72,516.86, while the NSE Nifty50 was down by 316.30 points to 22,503.30. The market appeared to be under pressure as soon as it opened.
What is the reason for the decline?
The stock market on Monday opened lower as the ongoing tension in West Asia does not seem to be stopping yet. Oil prices remain high. There seems to be a lot of uncertainty in the market at present.
How much was the initial decline?
The BSE Sensex lost 1,056.10 points or 1.44 per cent to 72,527.12, while the Nifty 50 dropped 306.50 points or 1.34 per cent to 22,513.10.
What about the Asian markets?
Asian indices opened lower on Monday morning as tensions in West Asia entered a fifth week. Japan’s Nikkei 225 fell 3.97 per cent, while the Topix was down 3.9 per cent. The benchmark Kospi fell more than 5 per cent, while the small-cap Kosdaq was down 3.97 per cent. Hong Kong’s Hang Seng index futures were at 24,630, lower than the benchmark’s previous close of 24,951.88.
How is American market?
Brent crude oil was trading at $116 per barrel. Dow Jones Industrial Average futures fell 253 points or 0.6 per cent. S&P 500 futures and Nasdaq 100 futures also fell 0.5 per cent.
Which sector showed the most pressure?
Bharat Electronics Ltd led the gains, by rising 1.14 per cent, followed by Reliance Industries Ltd up 0.46 per cent and Power Grid Corporation of India Ltd adding 0.07 per cent.
- Axis Bank Ltd saw the sharpest fall, dropping 4.02 per cent.
- Kotak Mahindra Bank Ltd declined 3.68 per cent
- State Bank of India Ltd was down 2.17 per cent
- Trent Ltd slipped 2.12 per cent
- Bajaj Finserv Ltd fell 2.11 per cent
- Nifty Midcap 100 fell 1.11 per cent and Nifty Smallcap 100 declined 1.02 per cent.
Is fear increasing in the market?
There has been a sharp rise in India VIX, which shows that fear is increasing in the market. Investors are currently avoiding taking risks.
