Big selling is being seen in the Indian stock market. The Sensex and Nifty benchmark indices are trading below 2%. The BSE index Sensex is around 1050 points as of 2.15 minutes while the NSE Nifty is down by about 300 points. It is believed that the major reason for this sale is the recent increase in cases of coronavirus. After the increase in corona cases, some restrictions have also been imposed in some cities of Maharashtra.
Some important things of the business-
- The Sensex has fallen below the 50,000 level due to weakness. Similarly, the Nifty also slipped below 14,675 due to the fall.
- 27 out of 30 Sensex stocks are trading in red mark. At the same time 41 out of 50 stocks of Nifty have weakness.
- The biggest weaknesses in the Sensex are in the stocks of Mahindra & Mahindra, Tech Mahindra, Dr Reddy Labs. The reduction in these stocks is more than 4%. Apart from this, Axis Bank, Larsen, Maruti Suzuki, etc. are also trading in the trail with big fall.
- Barring metal, there is a big decline in the stocks of all sectors. Nifty IT, Auto and Realty indices have decreased by more than 2%. Nifty Bank, Pharma, Energy, FMCG index weakened around 1.5%.
- Midcap and smallcap indices are also showing weakness like benchmark indices. The Nifty Midcap 100 index is trading around 1.5%, while the Smallcap 100 index is down by 1.20%.
What is the reason for the big drop in the market?
There are many important reasons for the decline in the market. Investors’ concern has increased due to the recent rising cases of Corona. The market has also reached new heights in recent times due to the continuous boom. The market is considered to be quite overvalued at this stage. Weak and mixed signals from overseas markets are also helping bears in the market. In the US, there has also been a steady rise in long-term bond yields, which has increased investors’ concerns about inflation and market overvaluation.