There is 40 Lakh Crore Rupees loss in Indian stock market in just 1 month which is between 27 September to 25 October and it is the Biggest market crash.
Market Index:
- Sensex-Fall by 8%
- Nifty-Fall by 8%
- Bank Nifty-Fall by 7%
- Midcap 100-Fall by 9%
- Smallcap 100-Fall by 8%
- Auto Index-Fall by 14%
- Capital Goods-Fall by 13%
- FMCG-Fall by 11%
- Finance-Fall by 6%
- IT-Fall by 3%
- Pharma-Fall by 5%
- Metal-Fall by 2.5%
Fear and Loss of The Crash:
Correction in Indian Stock market is normal, but it is danger for Retail Investors HNI aur UHNIs, Small investors has to face the loss. On 4 June,2024, there is 6% percent fall in the Markets, Investors had lost around 31 Lakh Crore Rupees during this Fall, This is the biggest fall after the Covid and this is also called ‘Covid Fall’.https://www.livemint.com/market/stock-market-news/market-crash-deepens-nifty50-down-6-5-in-october-what-should-investors-do-now-11729852006143.html
After the Covid lockdown Indian Stock Market has the biggest fall of that time, On 23 March,2020 Nifty and Sensex Fall by 13% Percent, Investors had lost there 14 Lakh Crore Rupees, and In the next week of this fall Sensex reach 28,288 points from 42,273 points.
Biggest Falls This Year:
- On 15 April,2024 Sensex Falls by 1.14%
2. The Biggest fall is seen in the Midcap and Smallcap Index and some shares Fall by 50%
3. During this time The Nifty Defence Index which is called the Superstar of the market is also Falling.
Reason of This Crash:
1.FII Selling:
Foreign Institutional Investors, big Companies which invest in the Indian Stock Market for Profits, start selling their stocks and Booking The Profit. Till 24 October FI Investors had already selled 1 lakh Crore stocks, and This is the First time in the history of Indian Stock Market. Indian Market has a total capital of 550 Lakh Crore, and FII’s hold’s 18% which means around 100 Lakh Crore.https://aajpatrika24.com/google-doodle-honours-kk-late-iconic-singer/
2.Result Disappointment:
October is the month of Result and the Listed Companies come with their 2nd Quarter result’s, and if the Result of the Companies are Poor then it will affect the Sentiment of the Market. And this is happened this time, Companies like Bajaj Auto and Nestle, which are the most costumer consumption Companies show’s Poor number in Sales, disappoints the Market. Companies like RIL, Kotak Mahindra Bank, Tata Consumer had shown the same Poor results.
3.Valuation In Market:
From the past few days all experts were saying that Midcap and Smallcap Shares are overvalued[100 PE] and due to growth in market many Fund Managers are buying them,But now due to fear of Correction Fund Managers are ignoring them.
4.Fear In Retail And HNI Investors:
During the fall on 4 June,2024 after such big fall market Balance itself and made new High in Few days. On the opening of October month Nifty is at 25788 and now Nifty is at 24180, Nifty fall’s by 6.22% in One month, and Sensexis at 84,257 at the starting of the month and now Sensex is at 79,4002 points Sensex fall’s by 5.78% and due to this Trend all Retail and HNI Investors are feared.
5.US Election on 5th Nov 2024
Analysis:
In the past 16 years Nifty 50 had took Correction 19 times[10 % percent fall is seen].And Fall more than 20%percent is seen only 8 times in Nifty 50. As per analysis Nifty took 8 months to go to their Bottom Out position means it’s lowest level, But the time that market take’s to Bottom out, Market took very less time in Recovery and recovery is better than the previous one, and the fall of Market during Covid and it’s Recovery is classical example of the Analysis.