Whose evil eye is on the stock market, 5.5 lakh crores sank due to these 5 reasons

By the way, the stock market has seen a decline for the third consecutive trading day on Tuesday. But Tuesday's decline is considered to be a big decline. Where both Sensex and Nifty have seen a decline of more than 1 percent. The major reason for this decline is the reduction of the rating of the US government by Moody's. On the other hand, foreign investors have withdrawn their money from the stock market.

Also, after last week's G, the stock market also caught the trade of profit booking. Also, due to the big decline in the heavyweight stocks of the market, Sensex and Nifty were seen crashing.

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The special thing is that the Indian stock market has seen a decline for the third consecutive day. If we look at the figures, the Sensex has seen a decline of more than 1300 points. While the Nifty has fallen by 378 points in three trading days. On Tuesday, investors lost Rs 5.50 lakh crore.

Big decline in Sensex and Nifty

On Tuesday, a big decline is being seen in the major stock market indices Sensex and Nifty. If we look at the figures, the Bombay Stock Exchange's major index Sensex closed at 81,186.44 points with a decline of 872.98 points. While during the trading session, the Sensex fell by 905.72 points to reach the day's low of 81,153.70 points.

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On the other hand, the National Stock Exchange's major index Nifty also closed at 24,683.90 points with a fall of 261.55 points. While during the trading session, Nifty fell 275.75 points to reach the day's low of 24,669.7 points

These are the reasons for the fall in the stock market

Moody's reduced the rating of the US government

Moody's has reduced the credit rating of the US government from AAA to Aa1. Due to which there has been a change in global sentiment. Concerns about debt are increasing. This move led to an increase in bond yields, with the 30-year Treasury yield rising by 5.03 per cent, the highest since November 2023.

The increase in yields has increased the possibility of reduced liquidity in the global market, which often affects emerging markets like India.

FIIs selloff

Foreign institutional investors (FIIs) have turned cautious, pulling out Rs 526 crore on May 19, while domestic institutional investors (DIIs) too sold Rs 238 crore. This was the first instance in over a month when both FIIs and DIIs sold shares simultaneously this  indicates  a slowdown in domestic flows.

Profit booking after recent rally

The recent rally in Indian markets – which saw the Sensex and Nifty surge nearly 4 per cent after the Operation Sindoor ceasefire – pushed up valuations. In the past nine sessions, the market capitalisation of BSE-listed firms rose by Rs 27.3 lakh crore. Tuesday’s fall was partly due to investors booking profits at higher levels.

Pressure from heavyweight stocks

On Tuesday, the stock market witnessed a decline in the shares of big companies. In this list, HDFC Bank, Reliance Industries, ICICI Bank, M&M, Maruti and Bajaj Finance were among the biggest losers. Shares of Eternal (formerly Zomato) fell by more than 4 percent.

Effect of new variant of Covid?

On the other hand, the effect of the new variant of Covid can also be seen on the stock market. According to the latest data, a total of 257 patients have been reported in the country. Out of which two people have died. Although the maximum impact of this Covid new variant was seen in Kerala. More than 69 patients have been reported in this state.