Mumbai, First Published Apr 18, 2022, 12:01 PM IST
The companies’ quarterly results were not as high as expected, with investors fearing a sell-off in stocks from early morning due to unfavorable international factors, resulting in a loss of Rs 4 lakh crore.
The stock had a market cap of Rs 272 lakh crore at the close of trading on Wednesday. But in the first hour of trading this morning, it fell to Rs 268.19 lakh crore.
There are 5 main reasons for this decline.
Infosys, HDFC quarterly results
The quarterly results of Infosys and HDFC were released last week. The results of these companies have not been as satisfying to investors as expected. As a result, investors began to sell shares of both the companies and started making gains since the start of trading this morning.
China’s GDP
At the end of March 2022, China’s GDP grew by 4.8 percent in the first quarter. This is slightly higher than the level of 4 per cent in the last quarter. This is slightly higher than expected, with growth boosted by the entrapment of the corona in March. Investors feared that various cities in China would be affected by the corona’s global impact on economic growth.
Rising inflation in India
Retail inflation in India has already crossed the Reserve Bank’s control level of 6 per cent for the past three months. It also reached 6.95 per cent last month.
Meanwhile, wholesale price inflation figures are out today. Headline inflation has been in double digits for the past six months and is expected to pick up in March. As a result, the Reserve Bank of India (RBI) is set to raise interest rates at its monetary policy meeting in June. Thus the market was surrounded by fears that investors would have to pay higher interest on the loan
ID Index
Shares of the IT sector fell more than 4 per cent, causing the market to fall. The reason is that the quarterly results are not as satisfactory as expected. Shares of Infosys fell 9% today, especially as quarterly results fell short of expectations.
Rising crude oil prices
Crude oil prices rose today as the war between Ukraine and Russia is expected to intensify. Brent crude was up $ 1.50 a barrel and Texas crude was up 98 cents
Last Updated Apr 18, 2022, 12:01 PM IST