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Contrary to the expectations of stock market investors, there was a big fall in Sensex and Nifty on Tuesday. By 12 noon, the Sensex fell by more than 750 points, due to which investors suffered a loss of Rs 3.27 lakh crore within 165 minutes of the stock market opening.

According to experts, there is a lot of pressure on the stock market due to the increase in the prices of crude oil and the huge fall in the rupee. According to experts, geopolitical tension and selling by foreign investors still remain a problem for the stock market. In such a situation, pressure is being seen continuously in the market.

On the contrary, out of the election results of 5 states of the country, BJP and its alliance are seen forming the government in 3 states. For the first time, a landslide victory has been achieved in Bengal along with Assam and Puducherry. Because of which it was expected that there would be a good rise in the stock market on Tuesday. But this could not happen. Let us also tell you what kind of figures are being seen in the stock market.

Big fall in stock market

Bombay Stock Exchange's main index Sensex witnessed a decline of 754.37 points during the trading session and reached the day's low of 76,515.03 points, falling below the level of 77 thousand points. Whereas at 12:40 pm the Sensex is trading at 76,772.89 points with a fall of about 500 points. However, the Sensex opened with a slight fall at 77,103.72 points. However, a day earlier the Sensex had closed with a gain of more than 350 points.

On the other hand, a decline is also being seen in the main index Nifty of the National Stock Exchange. During the trading session, Nifty saw a fall of about 240 points and reached the day's low at 23,882.05 points. However, at 12:40 pm, Nifty was trading at 23,958.55 points with a fall of 161 points. However, Nifty opened in the morning at 24,052.60 points. Whereas a day before, a rise of 134 points was seen in Nifty.

Which stocks declined?

Except IT and Metal, most of the Nifty sectoral indices declined. There was no significant movement in the major Nifty Smallcap100 and Nifty Midcap100 indices. The financial sector declined 0.75 per cent. The top two stocks by weight in the benchmark index—HDFC Bank and ICICI Bank—fell 1 per cent each. Larsen & Toubro, which has a large business in the Middle East region, lost 1.3 percent ahead of its quarterly results due later in the day.

Contrary to the general market trend, shares of pharmaceutical company Wockhardt rose by 10.5 percent. The company had turned a loss from loss to profit in the March quarter. Shares of real estate company Shobha gained 3.6 percent. The company had registered a more than two-fold increase in its profit in the fourth quarter.

Main reasons for market decline

1. Increase in Brent crude prices: The global oil benchmark was trading at around $113 per barrel. Higher crude prices are negative for India – the world's third-largest oil importer – as they increase inflationary pressures and weigh on economic growth and corporate earnings. Hariprasad K, research analyst and founder of Livelong Wealth, said that increased oil prices, which still remain above the $100 level, are a big risk for India.
2. Weak Global Signals: In Asian markets, Hong Kong's Hang Seng index was trading lower. American markets closed with a decline on Monday. The effect of which is also visible in the major indices of the Indian stock market, Sensex and Nifty.
3. Geopolitical Tension: Geopolitical tensions increased after Iran stepped up attacks on ships in the UAE and the Middle East, including the Strait of Hormuz. After which the sentiment of stock market investors started deteriorating and selling was seen in the market. V.K., chief investment strategist at Geojit Investments. Vijayakumar said that the market trend will be decided by the developments in West Asia, especially in the Strait of Hormuz. Renewed hostilities in the region and Brent crude rising again to around USD 113 are headwinds for the market.
4. Increase in Volatility: The volatility index, often called a 'fear gauge', rose more than 2 percent to 18.68. Increases in the index reflect increasing uncertainty among investors and usually cause rapid fluctuations in stock prices.
5. Rupee decline: The rupee fell 20 paise to 95.43 against the US dollar amid a weak market sentiment following renewed military clashes between the US and Iranian armies in the Gulf region. Forex traders said that due to instability in the region, capital is moving towards safe investments, which is benefiting the US dollar.

Investors lost Rs 3.27 lakh crore

The stock market is facing pressure since morning. Due to which the effect is also visible on the earnings of stock market investors. In fact, the decline in the market cap of BSE also means the earnings of the investors. If we look at the data, a day earlier i.e. on Monday, the market cap of BSE was Rs 4,67,24,941.59 crore, which came down to Rs 4,63,97,448.65 crore around 12 noon. This means that the market cap of BSE decreased by Rs 3,27,492.94 crore in 165 minutes.

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