The first trading session of October has been very disappointing for the stock market investors. Due to the fall in the stock market, investors’ wealth decreased by more than Rs 4.50 lakh crore. Due to increasing weakness in the rupee against the dollar and selling by foreign investors, there is disappointment in the market.
Investors’ wealth decreased by Rs 4.50 lakh crore due to profit-booking in the stock market. There was a fall of 750 points in the Sensex. Although the Sensex fell by 638 points at the market’s closing, the Nifty closed with a fall of 207 points. At the same time, the market cap of shares listed on BSE came down to Rs 268.26 lakh crore. Let us tell you why there was a significant fall in the Indian stock market on Monday.
Global Market Decline
Due to the fall in the stock markets around the world, there was a decline in the Indian market, and Asian markets were also trading with a drop.
Credit Suisse Crisis
The risk of credit default on Swiss bank Credit Suisse is increasing. Speculations are being made in the market to announce the restructuring plan of Credit Suisse on October 27, 2022. There has been a considerable decline in the share of Credit Suisse, which has an impact on the markets around the world.
Foreign Investors Sell-off
Foreign investors have been selling since the US Federal Reserve raised interest rates. On Friday, September 30, foreign investors sold shares worth Rs 1500 crore. Foreign investors sold shares worth Rs 7,624 crore in September.
Weakness in Rupee
Due to the demand for dollars, pressure is being seen on the rupee. The rupee is trading 0.67 percent lower at 81.89 against a dollar. The need for dollars from oil companies has increased due to pressure on the rupee.