Mumbai: The record breaking boom in Indian stock markets in the last five years had brought investors to the dream world of a lot of earnings, due to which many youth, women and general public were attracted to invest directly in the stock market or through mutual funds, but this record breaking boom has erupted in just five months, which has spread disappointment in every investment class. Those who were attracted to the statements of investor leaders in which they had lured voters before the election to strengthen India’s development saga, become the world’s third superpower, become a five -trillion economy and the Lok Sabha elections that they would see new records after the election, they are now crying when this record is destroyed in such a short time. The new US President Donald Trump’s tariff war has proved to be even more deadly for the Indian markets, growing rapidly during Ukraine-Russia War and Hamas-Israel’s geopolitical tension. Due to normal selling in shares, there was a black Friday -like atmosphere, in which the Sensex fell 1,414 points and the Nifty 50 index 420 points.
Today and Friday, due to the widespread fall in the shares, investors have been assets Rs 9.09 lakh crore, Rs 20.84 lakh crore in the last five days, Rs 40 lakh crore in a month and Rs 93.92 lakh crore in five months. Along with heavy losses in automobiles, capital goods, IT-software services, technology shares, heavy selling by foreign funds also caused havoc in shares of healthcare, consumer durable items. The investment portfolio of many investors was scattered. For the first time in the last 28 years, the stock market has closed down for five consecutive months. Many investors are desperate, as the prices of several shares have fallen by 60 to 70 percent from their highest level of September-October. Along with the Indian stock markets, the markets of Japan, Hong Kong and Shanghai were also demolished in Asia today. The decline was amidst the fear of Trump’s aggressive statement that they would impose tariffs on Canada, Mexico and China from March 1 and reciprocal tariffs would be implemented from April. The Sensex fell 1414.33 points to 73198.10 and the Nifty 50 Spot Index fell 420.35 points to 22124.70. After Kovid-19, Nifty recorded its biggest single-day decline since 3 October 2024. Today, it was said that the major decline was the reason for the vertical position of many players in margin funding and the large class lenders to have a large position in the shares, which were accustomed to trading in special coaches.
Among the auto shares, the auto index fell 1829 points, as the shares of Ashok Leyland, Mahindra & Mahindra, Tata Motors, Apollo Tires, Bajaj Auto, TI India, Eicher Motors etc. declined. IT stocks including Infosys and TCS also saw a decline and the IT index fell 1,581 points. Due to the continuation of the recession, there was an extraordinary decline in the stocks of capital goods today. The perception was extremely disappointing, as nervous retail investors and high net worth investors ran to sell several shares of that group, including small, medium-pussy and cash shares. Out of a total of 4082 shares, the price of 3343 shares declined. The BSE Small Cap index today closed 1,028.74 points to close at 43,082.90. While the BSE Midcap index fell 853.67 points to close at 38,592.02.
At the end of the day, the assets of investors in shares, ie the joint market capitalization of companies listed in BSE, decreased from Rs 9.09 lakh crore to Rs 384.01 lakh crore on today. Due to which on Thursday 20 February, there has been a loss of more than Rs 20.84 lakh crore in five days as compared to Rs 404.85 lakh crore. Market capitalization, which was at the highest level of Rs 477.93 lakh crore on 27 September 2024, has reduced Rs 93.92 lakh crore in five months. Foreign portfolio investors (FPIs), FII saw heavy net sales of shares worth Rs 11,639.02 crore in the cash segment today in the black Friday mania. A total of Rs 50,878.46 crore was sold as against the purchase of Rs 239.44 crore. While Mutual Fund-Ghrelu institutional investors (DII) today bought shares worth Rs 12,308.63 crore. Auto, capital goods, IT, consumer sustainable goods and healthcare shares declined continuously due to Trump’s adverse effects of the adverse effect of tariff imposing tariffs on Indian industry. In five months, the Capital Goods index has fallen by 27.58 percent, 26.56 percent in the auto index and 25.50 percent in the small cap index.
Promoters sold shares worth Rs 1.22 lakh crore in 2024-25
The promoter has continued selling shares through qualified institutional placements in the steady boom in the stock market after Corona. In the year 2024-25, shares worth Rs 1.22 lakh crore have been sold so far. This sales is the largest in history. Due to this, the average promoter stake in companies is also steadily decreasing. Promoter’s stake in listed companies in late December 2024 declined from 44.61 percent in late September 2022 to 41.08 percent at the end of December 2024. Since 2020-21, shares worth Rs 3,06,565 crore have been sold through the placement by promoters so far.
Foreign institutions sold Rs 3.23 lakh crore in five months
Foreign institutions have been selling in the Indian market for five consecutive months after the Sensex and Nifty reached the historic height in September 2024. In these five months, he has sold a total of Rs 3,23,765 crore, including sales of Rs 58,988 crore in February. In contrast, Rs 3,37,378 crore has been purchased by local bodies in five months.
Nikkei drops 1100 points in Asian markets, Hangseng 777 points dropped: US markets rise
Donald Trump’s preparation for launching tariff war against China and the statement of Chinese President Xi Jinping that he will not be afraid of Trump’s threats, is indicated globally. Today, due to the news in the markets of Asia-Pacific countries, there was a decline that Trump is going to put tight tariffs on China. In which Japan’s Nikkei 225 index fell 1100 points. Hangseng of Hong Kong fell 777 points. While the CSI 300 index of China’s Shanghai Stock Exchange fell 96 points. Whereas in the late evening, the US stock markets saw a rise of 277 points in Dow Jones and an improvement of 135 points in Nasdaq.
