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Stock Market Crash Today: Indian Benchmark Indis, Sensx and Nifty, less open for sixth consecutive session on Wednesday
Stock market accident
Sensex today: Continuing the streak of its defeat for the sixth straight session, at the lowest level of the day, the Indian stock market benchmark Sensex hit more than 800 points in the morning trade on Wednesday, 12 February, amid mixed global cues. The 30-Chair Index fell from its previous bandh of 76,294 to 75,388, while the Nifty fell below 50 22,800, falling more than 1%.
On the regional front, the Nifty Bank, Auto, Metal, Pharma, Realty, Consumer Durable, and Oil and Gas Industries all saw a decline from 1% to 2.5%.
In the broad market, the Nifty Smallcap 100 index declined by 2.9%, while the Nifty Midcap 100 declined by 2.3%. Small and Midcap Stock Bear are falling in the market area, there has been a decline of about 20% from its all -time high.
The total market capitalization of BSE-list companies declined by Rs 7.86 lakh crore, which settled at the rate of Rs 400.66 lakh crore.
Closing bell
However, later in the day, the benchmark indices gave a smart recovery stage. The BSE Sensex ended at 76,171.08, below 122.52 points, or 0.16%, from its previous close. During the day, the 30-share index fluctuated between 76,459.72 and 75,388.39.
NSE Nifty50 was reduced at 26.55 points, or 0.12%, 23,045.25. The index hit the intraday high of 23,144.70 at high and at a low of 22,798.35.
Market smart recovery after sharp decline
Mehta, senior VP (Research) of Mehta Equality, Prasant Tape mentioned that the markets were highly unstable, experienced sharp fluctuations during intra-day trades. Following a significant decline of more than 900 points in early trading, the markets suffered some losses in late trades. However, the benchmark shut down the lower low by taking selective advantage in IT, banking and auto stocks.
He said that due to increasing uncertainty in both global and domestic markets, with the outflow of falling rupees and funds, investors are adopting a cautious approach and focusing on safe equity investment.
The main reason behind the stock market accident on 12 February
US tariff growth on steel and aluminum
On Monday, the US President announced an increase in tariffs on steel and aluminum imports, removing country-specific exceptions and product exclusion, and said that global mutual tariffs would be introduced in the coming days.
Take precautions in front of the new income tax bill
A sense of caution in front of the new Income Tax Bill can contribute to the ongoing market sales. Reports show that the bill presented by Finance Minister Nirmala Sitarman in his budget speech on 1 February is likely to be presented in the Lok Sabha on Thursday.
There are concerns at potential high tax rates on financial securities under the new bill. “Unbalanced apprehensions of high taxes on financial securities due to the implementation of the new income tax bill have sold nervousness among the weak market participants. Devash Vakil, head of Prime Research in HDFC Securities, said, “Some of the sales have also been linked to a margin call on leveraged positions.
Hawkish comment by US Fed Chair Jerome Powell
Expectations for cuts in additional American federal reserve rate this year became moist after the US Fed president Jerome Powell on Tuesday after confirming a cautious stance on interest rates during her testimony before the Congress. Powell indicated that the central bank is not under pressure at low rates in the near future, as inflation is high and the job market remains strong.
FPI Celloff
Foreign portfolio investors (FPI) have been selling Indian equity aggressively since last year. Overall, he has since launched Indian shares worth more than Rs 2.8 lakh crore.
Weak income and elevated assessment
Indian companies have reported weak quarterly earnings for the last three quarters, making the valuation unstable, which has made significant sales by foreign investors. Sluggish earnings have struggled to maintain the market high evaluation.
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