Mumbai: US President Donald Trump pushed the world into tariff war and Prime Minister Narendra Modi on February 12-13 on February 12-13, Reserve Bank of India (RBI) two to prevent the rupee from falling more against the US dollar. Selling $ 5 billion in foreign exchange market in days. Amidst this major action, the rupee rose 66 paise to 86.83 against the US dollar. The Indian stock markets suddenly and widespread decline in the last few hours amid the RBI special campaign due to the impact of the tariff war. The Nifty lost a level of 23,000 in Intrade. When the Sensex reached around 76,000.
Between global factors and weak results of domestic companies, experts have also started questioning the evaluation of small and medium -sized shares. Today, due to fall in shares for the second consecutive day, the wealth of investors drowned Rs 15.41 lakh crore in two days. The assets have suffered a loss of Rs 1,000 crore due to the ongoing decline in the stock market over five days. An erosion of 16.97 lakh crore rupees has been seen. Unlike global markets, there was no significant decline in the Indian stock markets today after opening with a slight two-way fluctuations. But to prevent the rupee from falling in the foreign exchange market, the Sensex and Nifty have been seen suddenly selling in the last few hours amid reports of a large campaign. In view of the large -scale dollar sales by the Reserve Bank, there was talk of selling in dollars by the bookies, and this class had sold huge amounts of shares to complete the deficit. On the other hand, there was a huge decline in the shares due to the huge purchases of dollars and funds by companies dependent on large imports of raw materials, that the performance of the companies would deteriorate due to expensive imports.
On Monday and today, the Reserve Bank sold five to seven billion dollars in the spot market. Market sources have expressed the possibility that the situation has worsened due to the supply of rupees from the dollar being affected and a sudden withdrawal of Rs 60,000 crore from the market. The supply of currency in the country’s financial market is currently less than the demand. The Reserve Bank on Monday auctioned Rs 58,000 crore. Today, Rs 2,00,000 crore was inserted in the market through convertible repo auction and Rs 2,50,000 crore was added on Wednesday. Dollar sales are expected to affect the stock market in a difficult financial situation, causing acute selling. Secondly, it is also likely that due to the aggressive selling of the Reserve Bank, the players encouraged to sell shares to compensate for the dollar.
Funds sold heavy in healthcare, automobiles, metal-mining, capital goods-electricity shares as well as realty and FMCG shares. At one time the Sensex fell 1281.21 points to a low of 76030.59 points and finally fell 1018.20 points to close at 76293.60 points. The Nifty 50 lost a level of 23,000 and fell 394.95 points to a low of 22,986.65 at one time, finally 309.80 points to close at 23,071.80.
With the Sensex and Nifty -based decline, the prices of several stocks today declined normal and the total market capitalization of companies listed in investors, ie BSE, fell by Rs 9.30 lakh crore to Rs 408.52 lakh crore. Thus, in the last two days, the assets of investors in shares have come down by Rs 15.41 lakh crore.
Foreign portfolio investors sold net cash worth Rs 4,486.41 crore today. At the same time, domestic funds and institutional investors made net purchases of Rs 4002 crore. The rupee stopped before breaking the level of 88 against the US dollar in the foreign currency exchange market, recovering from yesterday’s level to 86.63 and finally gained 66 paise to close at 86.83. Today, the rupee also strengthened faster than the currencies of other countries. The rupee increased by 72 paise to Rs 89.59 against the euro and the rupee rose by Rs 1.18 to Rs 107.36 against the British pound.
