Closing Bell: Know the reason stock market dips today

The correction period within the domestic stock markets carried over into the first day of the week (i.e. Monday 3 March) as the major benchmark indexes Sensex and Nifty closed almost flat. The market opened on a positive note, but eventually closed towards the negative territory due to sales across foreign consumers in conjunction with heavy weight stocks such as Reliance Industries coupled with HDFC Bank.

Today, 30 BSE index stocks traded at Sensex which started at 73427 points opened with a plus of 200 points. It had a high of 73649 points, but after half an hour I dropped into the red mark. Closing at 73085.94 with a drop of 112.16 which translates to 0.15 percent loss.

In the same fashion,  National Stock Exchange NSE also had the same market opening at 22194 points. Similarly to the above index, it too dropped into the red zone after a brief period. The indicator at the ending point showed nimble signs with the closing price being 22119.30 where the decline was by 5.40 which is 0.02 percent lower than previously.

What was the Reason for the stock market fall today?

Due to global factors, overall sentiments of the market continue to remain weak. The pursued interest of US President Donald Trump worrying tariff announcements over the market has created a cacophony. Additionally, foreign investors sold Reliance Industries, HDFC, and other shares highly weighted in the index which pulled the market further down.

February alone saw ₹40 lakh crore worth of losses for investors.

Individual investors, as well as institutions, have seen huge losses in February. The market capitalization of all companies listed on BSE has reduced over the last month by Rs 40 Lakh Crores. At the end of trading on January 31, 2023, the market capitalization of all the companies listed on BSE was Rs 424,99,887 crores, which fell down to Rs 384,60,048 crores by the end of trading on February 28.

Nifty50 down 16% from high, Sensex down 15%

After touching an all time high on 26th September 2024, Indian stock market major indices have dipped back below the all time high and are now in the sell- off phase. In the span of five months, the Nifty 50 index soared to a new all-time high of 26,277, and is currently at 22,124 points. Nifty 50 is currently 4153 points lower than the all-time high of 26,277, which translates to about 16%.

The BSE Sensex stood at 73,198 as of last Friday, with points lost being 12,780 and percent lost being 15% with the record high of 85,978. The Bank Nifty index also saw a closure at 48,344 last Friday, after losing 6,123 points from record high of 54,467, representing 11.25 percent.

Will the market plunge deeper than this?

Sameer Arora, the founder of Helios Capital and current Chief Investment Officer, believes that it will take approximately two to three months for the domestic stock markets to smoothen. While speaking at 'BS Manthan', Arora mentioned that he is convinced, just like everyone else, that the Indian stock market is definitely in a tough spot currently. The market is in a state of profound limbo due to Trump and several other factors.

Talking about the constant drop in the value of Indian shares, Arora stated that the rate at which the market is nosediving is extremely worrisome which will cause considerable damage to the investors. Arora has strongly expressed his opinions regarding Trump’s tariff war and stated that in the long run, Donald Trump will not be able to indulge in the tariff game. This devastation is only for 3-4 months.