Stock Market falls by more than 1000 points due to american fedral, check details
By Lokmat English Desk | Published: February 7, 2022 06:13 PM2022-02-07T18:13:59+5:302022-02-07T18:13:59+5:30
Next 
The week in the stock market has been started with a major downfall. The stock market index fell more than 1,200 points intraday to a low of 57,424 on Monday.
On the other hand, heavyweights like Bajaj Finance, Bajaj Finserv, HDFC, and HDFC Bank were struggling to maintain the Nifty at 17,150 amid selling pressure.
The sharp fall in the BSE Sensex on Monday cost investors around Rs 3 lakh crore. However, in the last phase of trading, the market recovered and fell by 1023.63 points to close at 57,621.19.
Meanwhile, bond markets and foreign currency markets remained closed today. However, the Maharashtra government declared a public holiday on Monday after the demise of Lata Mangeskar.
The biggest drop in Sensex was 3.63 percent in HDFC Bank. In addition, preferred stocks of foreign investors like HDFC, Bajaj Finserv, and Bajaj Finance also declined by 2.5 to 3.5 percent.
The stock market is falling sharply during trading. The main reason for the decline was the sale of foreign institutional investors (FIIs), which has led to a rise in crude oil prices and the possibility of a rise in US bond yields.
All the shares that fell today are FII's preferred shares. These include heavyweights like HDFC, HDFC Bank, ICICI Bank, Infosys, and Kotak Bank.
These stocks as well as benchmark indices have come down due to the sale of FIIs.
If we talk about domestic signals, budgets were good and companies' revenue growth in the December quarter was also good. But the important question here is, does there any concern in the market before the Assembly elections in 5 states? Nifty in its 50-day moving average.
However, 17,200 is a fine level from which we can expect recovery. If that doesn't happen, it could be as high as 17,000-16,800. But with support, the 17450-17500 will now act as a strong resistance.
Apart from this, an interest rate hike in the US is also important and a cause for concern. Pressure is mounting on the Federal Reserve to curb rising inflation. According to Geojit Financial Services, 4.67 million new jobs were created in the United States in January.
There is no doubt that the Federal Reserve will take steps to reduce inflation. If the Federal Reserve raises interest rates by 0.50 percent in March, global markets could see a sharp decline.
