Until a few days ago, people were asked how much money they made? But now the question arises, how much did it sink? Because money has been losing money in the stock market in recent weeks. After years of waiting, many investors’ portfolios were in the green, only to turn red within a month. Most retail investors say the money they make in a year is gone in a matter of days. In this sense, this decline is the first since the COVID-19 pandemic.
In fact, most retail investors strongly protested this. This is not us, it is the data shouting. Data over the past month proves that the market is going through a very bad phase. Every morning investors think the market is going to go up now. But the sell-off is becoming more widespread, and investors are losing their hard-earned money. In this context, investors are abuzz as to why Goddess Lakshmi is so angry about the stock market ahead of Diwali.
Stock market fell sharply
Some small and mid-cap stocks have fallen by 50% in the past month. If we talk about indices, the Sensex has lost about 6,500 points from its all-time high and the Nifty has lost about 2,100 points. Nifty fell over 8% and Sensex also fell 8%. As a sector, the defense index is down 26% from its peak. While the automobile industry fell by 14%, the capital goods industry fell by 13.5%.
The loss figures over the past month are staggering. Investors lost Rs 4,000 crore in a month amid the sell-off. As of September 27, 2024, the market capitalization of BSE was approximately 47.7 billion rupees, which had fallen to 437 billion rupees on October 25.
The losses now can also be looked at this way: the total GST collection for the financial year 2023-24 is Rs 2,018 crore. While investors lost Rs 4,000 crore in the market in the past month, the amount lost by the government in the market in the past month was double what the government earned from GST in a year.
Profit booking is an important reason
Now the question arises, why has the market fallen so sharply and where can we find support? Experts say profit taking is emerging after the market rose sharply. Therefore, one must be very cautious when investing now. Here are some big reasons why the market is down…
– Foreign investors are selling rapidly in Indian markets. They are divesting from emerging markets like India and investing in China. In October alone, foreign investors withdrew Rs 108 crore from the market. Because the current valuation of the Chinese market is a little cheaper than that of India.
– Many large companies had poor second-quarter results, causing their stock prices to fall sharply. Affected by this, market sentiment continued to deteriorate. In particular, the performance of the automobile industry, fast-moving consumer goods industry, and some technology companies has brought a big blow to the market.
– There has been a clear rise in fundamental stocks over the past year and a half, but within this group, there are some stocks that have also risen a lot, and for no particular reason. In particular, government company stocks, railway stocks, new technology company stocks and government bank stocks rose sharply. This does not match growth. Especially in the small and mid-cap sector, some stocks once soared, but now these stocks have suffered a big blow. The sell-off has been particularly prevalent among stocks with expensive valuations, which have fallen 50% from their highs.
Where will the decline stop?
Experts say that the market is currently in a selling zone, but the first support level for Nifty is at 24,000 points, followed by strong support at 23,800 points, from where the market sentiment may change.
(Note: Before investing in the stock market, be sure to seek help from a financial advisor)
