Stock Market Crash: The Indian stock market crashed badly on the last day of February on Friday before the start of March. On Friday 28 February, all -round selling was seen in the market. At the end of the trading, the Sensex fell 1,414.33 points or 1.90 percent to 73,198 and the Nifty was 420.35 points or 1.86 percent to 22,124. Due to a sharp fall, the market cap of all the companies listed on the Bombay Stock Exchange (BSE) has fallen by Rs 10 lakh crore to Rs 383 lakh crore, which was Rs 393 lakh crore on Thursday.
This huge decline in the stock market was led by midcap and smallcap shares. The Nifty Midcap 100 index fell at 47,915 points or 2.49 percent and the Nifty Smallcap 100 index fell 456 points or 3.01 percent to close at 14,700.
5 major reasons for decline in stock market
- Terror of US President Donald Trump’s tariff
- Weak US market and macro signal
- Fii’s frequent selling
- Earnings Estimate Cut
- Broad market valuations
The reason for the decline in the market is believed to be the announcement of tariff from US President Donald Trump, due to which the threat of tariff war has been posed. LKP Securities Senior Technical Analyst, Roopak De, says that the Nifty has declined a major decline on Friday. It has declined by more than 400 points after a breakdown of consolidation. The RSI is built in the oversold zone, which shows the recession sentiment.
21,800 and 22,000 is a strong support for Nifty. If it rests on top of it, then recovery can be seen. If the Nifty goes under it, the decline may increase further.
780 shares on BSE in green mark, 3,214 shares in red mark and 88 shares have closed without any change. The Nifty’s sectoral index declined 3.92 percent in auto, 4.18 percent in IT, 2.62 percent in FMCG, 2.09 percent in energy, 2.07 percent in infra and 1.92 percent in pharma. Almost all the index are closed in the red mark.
Tech Mahindra, IndusInd Bank, M&M, Bharti Airtel, Infosys, Tata Motors, Titan, TCS, Nestle, Maruti Suzuki, HCL Tech, UltraTech Cement, Sun Pharma, Zomato, Bajaj Finserv and Bajaj Finance Top Lokeons. Only HDFC Bank has closed in green mark.
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