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Stock market crash before RBI Announcement: Sensex fell 800 points, big fall in banking and IT

Photo:FILE

Sensex

RBI The decline in the Indian stock market has increased since the news of the release of the statement by Governor Shaktikanta Das at 2 pm. At 1 pm, the BSE Sensex is trading at 56,170.53 points, down 800 points. At the same time, NSE Nifty is trading 234.95 points down at 16,834.15 points. In fact, there is a fear in the market that RBI Governor Shaktikanta Das may announce a hike in interest rates to control the rising inflation. Due to this all the loans will be expensive. Along with this, the RBI governor can take other steps to reduce liquidity in the market. This will have an adverse effect on the stock market. This has increased the fall in the market. The biggest fall is seen in the shares of banking and IT companies.

Retail inflation above RBI target

Due to the ongoing war between Russia and Ukraine, inflation has increased worldwide. In India too, retail inflation reached 6.95 per cent in March due to expensive food items and expensive fuel. This is more than the RBI limit of 6 per cent. At the same time, while announcing the monetary policy review in April, the RBI governor himself had said that the priority of the central bank would now be to check inflation. In such a situation, it is believed that RBI can announce a hike in interest rates.

The market had a strong start

The stock market had a strong start on Wednesday. After the market closed on Tuesday on the occasion of Eid, the Sensex opened with a gain of 126 points at 57,102.86 points on Wednesday. At the same time, the Nifty of the National Stock Exchange also rose 20 points to open at 17,089.90. Maruti, PowerGrid, ITC, Tata Steel, NTPC, SBI were up in early trade.

Global market trend mixed

Talking about the sentiment in the global market, today’s trade saw a mixed trend in the major Asian markets. At the same time, on Tuesday, the US markets closed with an increase. Stock markets remained closed on Tuesday on account of Eid-ul-Fitr. Meanwhile, international oil benchmark Brent crude rose 1.08 percent to $106.10 a barrel. Foreign institutional investors sold shares worth Rs 1,853.46 crore on a net basis on Monday, according to provisional data from the stock market.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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