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Stock Market Crash: Why was there an uproar in the stock market? These are 5 big reasons

 Stock Market Crash: Indian stock markets suddenly crashed on Wednesday 20th December. Sensex took a dive of 930 points. Nifty closed with a loss of 300 points. The fall was so sharp that investors lost Rs 9.32 lakh crore in a day. Experts say that there is not just one reason behind this decline, but many reasons.



Stock Market Crash: Indian stock market on Wednesday 20 December

 Suddenly he collapsed. Sensex took a dive of 930 points. Nifty closed with a loss of 300 points. The fall was so sharp that investors lost Rs 9.32 lakh crore in a day. Experts say that there is not just one reason behind this decline, but many reasons. This ranges from profit booking, increase in Covid cases in some parts of the country, rise in crude prices, FII's.

1. Profit booking

A major reason behind Wednesday's fall in the stock market was profit-booking. The market was touching new peaks every day for the last few days. In such a situation, market observers were expecting a good profit booking earlier. Vinit Bolinjkar, head of research at Ventura Securities, said, "This selloff was already expected. Nifty may also be seen breaking the level of 21,000 in the next few days." He said that after November 1, there was a good rise in the market, due to which the valuations reached the peak. In such a situation, profit booking is certain.

2. Increase in the number of Covid cases again

A surge in Covid cases is once again being seen in some parts of the country. In the last 24 hours, 614 new cases of Covid have been reported in the country. These cases are due to the new variant of Covid 'JN.1', which was first detected in Kerala. After the emergence of this variant, the neighboring state of Karnataka has asked people above 60 years of age, who have other serious diseases and symptoms of cough, phlegm and fever to wear face masks compulsorily.



3. Rise in crude oil

Crude oil plays a very important role in India's economy. Maritime trade has been affected by attacks on ships in the Red Sea by Iran-backed Houthi rebels. Due to this, many shipping companies have been forced to abandon the Suez Canal route and adopt another and longer sea route. There has been a surge in the price of its crude oil.

4. FII withdrew money from the market

Withdrawal of money by foreign institutional investors (FIIs) was also an important reason for the decline. According to the data, foreign investors had sold shares worth a net Rs 601.52 crore in a day. This figure is expected to be higher on Wednesday.

5. All sectoral indices remained in the red.

There was an all-round decline in the stock market on Wednesday. The market was not supported by any sectoral index. All sectoral indices remained in the red. Both midcap and smallcap indices closed with losses of more than 3%. The biggest decline was seen in shares of power, utility, telecom and services sectors.









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