The stock market crash has led to a big crash in the market, and investors are the most affected. The data is a witness to this. In the last one month, the figures are telling that the market is going through a very bad phase. Every morning, investors hope that the market will rise, but every day, the selling pressure is increasing, and investors’ hard-earned money is drowning. In such a situation, investors are saying that before Diwali, Mother Lakshmi seems to be angry with the stock market.
Investors are in a state of panic (Stock Market Crash)
Currently, the most panic is among retail investors. It’s not our words, but the data itself is testifying to this. The figures for the last month are telling that the market is going through a very bad phase. Every morning, investors hope that the market will rise, but every day, the selling pressure is increasing, and investors’ hard-earned money is drowning. In such a situation, investors are saying that before Diwali, Mother Lakshmi seems to be angry with the stock market.
Big crash in the stock market (Stock Market Crash)
In the last month, many selected mid-cap and small-cap shares have seen a decline of up to 50%. If we talk about the index, the Sensex has fallen by around 6,500 points, and the Nifty has fallen by around 2,100 points. The Nifty has seen a decline of more than 8%, and the Sensex has also seen a decline of around 8%. The defence index has fallen by 26% from its peak. At the same time, there has been a decline of 14% in the auto sector and 13.5% in the capital goods sector. In the last month, this rapid selling has shaken investors. Due to this selling, investors have lost around 40 lakh crore rupees in just one month.
Profit booking is a big reason (Stock Market Crash)
Now the question arises why is the market falling so much, and where will it take support? After the recent big rise, profit booking is happening, due to which investors need to be very cautious while investing.
Some major reasons for the decline in the market (Stock Market Crash)
Foreign investors are rapidly selling in the Indian market. They are withdrawing money from emerging markets like India and investing in China, where the valuation is cheaper compared to the Indian market. Only in October, foreign investors have withdrawn around 1.08 lakh crore rupees from the Indian market, which has put pressure on the market. The weak results of many major companies in the second quarter are also affecting the prices of shares, due to which the market sentiment is continuously deteriorating. Especially, the weak results of auto sector, FMCG, and some tech companies have given a big shock to the market.
Government bank shares have seen a rise (Stock Market Crash)
The shares of government companies, railway shares, new technology companies, and government bank shares have seen a lot of rises, which does not match their actual growth. Even in the mid-cap and small-cap segments, some shares have risen excessively, which are now facing a big decline due to profit booking. The shares with high valuations are under selling pressure, and many shares have fallen by up to 50% from their peak. Therefore, due to the current volatility in the market, investors need to be very cautious.
