Investors in the stock market, which had been falling down for almost a week, still faced huge losses. Smallcap shares fell nearly 3 per cent and got caught by the recession and the mid -cap also slipped 2.4 per cent and reached close to the recession. The mid -cap share has come down 18.4 percent from its top. Nifty 50 and Sensex with abundance of largecap shares also fell more than 1 percent during the day trading, but later he compensated for half the loss.
When the stock market, an index or stock falls down 20 per cent from its recent highest level, it is believed to be caught in the ‘bear market’. Slow growth in profits of companies, high evaluation of shares, concerns over the impact of change in US trade policy and the transport of foreign portfolio investors have destroyed the market. Due to these reasons, the trust of investors has been quite staggering and the market capital has hurt around Rs 78 lakh crore.
The Nifty Smallcap 100 has lost 21.6 per cent from its top level and the Nifty Midcap 100 has fallen 18.4 per cent from this level. Both index have moved to the lowest level of the last eight months. The Nifty closed at 22,929 and the Sensex at 75,939, down 12-12 per cent from its top level. Both indices closed at the lowest level after 27 January and are not far from their eight -month low. Talking about the whole week, the Sensex has fallen by 2.5 per cent and the Nifty by 2.7 per cent. This is the biggest weekly decline after 22 December 2024. Both these indices have been closed in red mark in eight consecutive seasons, which is the longest series of decline in the last two years.
The total market capitalization of companies listed on the Bombay Stock Exchange declined by Rs 7 lakh crore to Rs 400.2 lakh crore, which is the lowest since June 2024. Foreign portfolio investors purely sold about Rs 4,295 crore. Along with this, he has sold shares worth about Rs 1 lakh crore so far in this year.
Vinod Nair, the research head of Zeepled Fine Shoal Services, said, ‘The results of companies earlier this year are much weaker than the market estimates, especially in midcap and smallcap, which causes investors who are avoiding to stop. ‘
First Published – February 14, 2025 | 10:59 PM IST
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