This morning has been no less than a nightmare for stock market investors. Mixed signals from global markets and the sudden rise in international crude oil prices have broken the back of the Indian stock market. As soon as the market opened on Thursday, there was an uproar on Dalal Street and crores of rupees of investors were lost in no time.
On April 30, the fourth trading day of the week, both the major indices Sensex and Nifty opened under the deep shadow of red mark. Bombay Stock Exchange (BSE) Sensex fell by 910.03 points or 1.47% to the level of 76,586.33. At the same time, Nifty of National Stock Exchange (NSE) was also seen slipping by 282.80 points (1.17%) and trading at the level of 23,894.85. After a week, Nifty has again broken the level of 24,000, due to which nervousness has increased among traders.
Shares in red mark
The condition of the market can be gauged from the fact that at the beginning of trading, the number of falling shares was more than the rising shares. According to the data, a huge decline was recorded in about 1,371 shares, while only 873 shares managed to gain. At the same time, there was no change in the position of about 137 shares. The biggest selling was seen in banking, auto and IT sector giants, due to which the market could not recover.
Crude oil fire spoils the game
The main reason for this big decline in the market is being considered to be the rise in crude oil prices. Crude oil prices have crossed $120 per barrel after America increased pressure on Iran. India imports most of the oil it needs, hence due to the cost of oil, the country is facing the fear of increasing trade deficit and inflation. Due to this fear, investors started selling all around.
What is your advice for investors?
Market experts believe that until tensions in the Middle East subside and crude oil prices stabilize, the market may continue to fluctuate. Small investors are currently being advised to avoid taking any major decisions in haste. This decline of the market has made it clear how important a role the game of global politics and crude oil plays in deciding the direction of the Indian market.
