- Sensex is trading at 28,491 digits and Nifty is trading at 8,328 points
- On Wednesday, the Sensex fell 1,709 points to a 3-year low.
The downward trend in the market continues on Thursday. However, the market has been climbing since 2 pm. After falling more than 1700 points on Wednesday, the Sensex opened down 1809 points on Thursday. The Nifty also lost 490.50 points to 7,978.30. The impact of the decline of the US market is being seen on the Indian market. On Wednesday, the US market Dow Jones closed 6.30% down. Other markets in Asia are also trading down. The Nifty has reached below 8,000 for the first time since 27 December 2016. The BSE closed at 28,869, down 1709.58 points, breaking the psychological level of 29 thousand. The Nifty closed down 425.55 points at 8,541.50.
Bank shares fall the most
On Thursday, the Nifty fell 6% to a 3-year low. Bandhan Bank is running down 11% at the highest. IndusInd and Kotak also fell 9–9 per cent. HDFC Bank is down 7% and ICICI Bank is down 5.7%. The rupee has also hit a record low against the dollar. It opened down 70 paise to 74.96 against the dollar at the start of trading. It was closed at 74.26 on Wednesday.
3 reasons for market decline
1. Effect of Coronavirus: Due to increasing cases of coronavirus, economic activity has decreased worldwide. Due to this, the possibility of deepening recession is increasing. As such, analysts are predicting a 1% decline in global GDP growth.
2. World markets fall: US stock market Dow Jones closed down 6.3% on Wednesday. Asian markets are also seeing losses of up to 6%. In view of the increasing impact of Coronavirus, the European Central announced a relief package of $ 820 billion. Despite this, the markets did not stop falling.
3. Foreign investors withdrawing money: Foreign Institutional Investors (FIIs) are continuously selling shares in the Indian market. On Wednesday, They sold shares worth Rs 5,085.35 crore. It has sold 43,000 crore shares in the month so far in March.