Mumbai, First Published Apr 6, 2022, 3:48 PM IST
Trading on the Bombay Stock Exchange and the National Stock Exchange ended for the 2nd consecutive day on the back of international factors and the announcement by the US Pet Bank.
Causes of decline
The US Federal Reserve announced yesterday that drastic measures will be taken to curb rising inflation in the United States from next May, raising interest rates. This caused a stir for investors in the international market and the international stock market.
Western nations are considering imposing further new sanctions on Russia during the Ukraine-Russia war. Investors feared that such a move would make it difficult to export crude oil and other commodities.
The monetary policy meeting of the Reserve Bank is about to take place. Fears were high among investors as to whether the Reserve Bank would raise interest rates to curb rising inflation in the country.
Moreover, the spread of the corona infection in China to neighboring provinces without a decrease, and the continued imposition of lactose, has caused concern to investors. For these reasons, Asian stock markets also declined. Japan’s Nikkei fell 1.5%, South Korea’s 0.8% and Australia’s 1.2%. The Chinese stock market has been volatile since the start of the two-day holiday this morning.
Start decline
These factors were also echoed in the Indian stock market. The Sensex fell 450 points and the Nifty fell below 17,807 points as investors began to sell shares as trading on the Mumbai Stock Exchange began. This decline lasted until the end of trade.
Fall
The Bombay Stock Exchange benchmark Sensex fell by 566 points to close at 59,610 at the end of the evening trade. At the National Stock Exchange, the Nifty was down 149 points at 17,807.
Of the 30 major stocks on the Mumbai Stock Exchange, only 6 companies ended with gains. NTCP shares were up 3.5 per cent, Powergrid 1.6 per cent and Tata Steel 2 per cent. Shares of HDFC Bank and HDFC Bank fell sharply to close at 2%. Shares of Tech Mahindra, HCL and Infosys also ended lower.
Shares of public sector banks, metals, construction and electricity rose on the National Stock Exchange. In contrast, shares of FMCG, information technology, pharmaceuticals and banking ended lower
Last Updated Apr 6, 2022, 3:48 PM IST