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Stock Market News: The Indian stock market crashed badly on 7 April (Monday) due to increasing global trade war and the possibility of recession in the US. US President Donald Trump’s tariff announced and China’s retaliation on it has completely shook the market. The Sensex closed down by 226 points, while the Nifty went below 22 thousand. Due to this decline, the assets of investors were reduced by about Rs 13.5 lakh crore in a day.
Due to this, there was an outcry in small cap and mid -cap stocks. The BSE dives 3.46 percent in the midcap index and 4.16 percent in the small cap index. All sectoral index also closed in red mark. The most declined was seen in the shares of metal IT reality and capital goods.
At the end of the trading, the BSE Sensex fell 2226.79 points or 2.95 per cent to close at 73, 137.90. At the same time, the NSE’s 50 -share index Nifty lost 742.85 points or 3.24% to close at 22,161.60.
Tremendous decline
The total market capitalization of listed companies in BSE came down to Rs 389.92 lakh crore on 7 April, which was Rs 403.34 lakh crore on its previous business day i.e. Friday 4 April.
In this way, the listed market cap in BSE companies has come down by about Rs 13.42 lakh crore. In other words, if it is said, the assets of investors have fallen by Rs 13.42 lakh crore. This decline was so fast that all 30 shares in the BSE Sensex closed in red mark. This has happened for the first time in the last several years.
How will the market move?
Talking with money control, Siddharth Khemka, head of Research and Wealth Management, said that the main reason for the selling in the market is feared of global trade war and due to this, there is a possibility of going into the recession of Global Economy.
Many countries, including China, Canada and the European Union, have also said to reply on American goods. Now, there will be suspense on it before the next phase of tariff hike and there is no suspense and this uncertainty in the market is creating a big nervousness.
Khemka has advised to avoid selling in panic or putting risky bets. He says that investors should use it to start purchasing gradually in fundamentally strong and domestic economy dependent companies. They are finding them appropriate in terms of consumption, financial and banking share investment.
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