NEWS
Stock Market Crash: Massive chaos in the stock market, Sensex falls 400 points, Nifty below 25850, learn the major reason for the decline
The Indian stock market witnessed a sharp decline on February 12th. IT stocks like Infosys, Wipro, and Tech Mahindra fell up to 5 percent from the Nifty. Let's explore the reasons behind this decline.
Chaos in the stock market
Indian Stock Market Crash: The Indian stock market witnessed a sharp decline on Thursday, February 12th. The BSE Sensex slid 465 points, while the NSE Nifty 50 traded below 25,821. IT stocks saw heavy selling during the trading day.
IT stocks like Infosys, Wipro, and Tech Mahindra fell up to 5 percent on the Nifty. Furthermore, global cues have shaken investor confidence. Let's explore the reasons behind this decline.
1. Global markets did not provide support
International market sentiment also didn't favor the domestic stock market today. Asian markets were under pressure, and Hong Kong's Hang Seng index traded in the red.
Meanwhile, US stock markets also closed lower on Wednesday. These weak global cues had a direct impact on the Indian market, leading to a collapse.
2. Crude oil prices spoiled the market trend
Ongoing tensions between the US and Iran have boosted crude oil prices. Globally, Brent crude oil prices rose 0.46 percent on Thursday to $69.72 per barrel.
Rising crude oil prices have had an impact on the stock market. Rising prices increase the risk of inflation. This is also believed to be a reason for the market decline.
3. IT shares are red like tomatoes
Investors heavily booked profits in IT stocks during the trading day, leading to a decline of nearly 4 percent in the Nifty IT index. According to the latest data, most IT stocks, including Infosys, Wipro, TCS, and Tata Elxsi, fell 5 to 6 percent.
The reasons behind this are believed to be the recent difficulties in Artificial Intelligence and the low expectation of the US Fed cutting interest rates.
stock market situation
At around 11:50 am, both major benchmark indices were trading in the red. The BSE Sensex had slipped 464.54 points, or 0.55 percent, to 83,769.10. The Nifty 50 was down 129.80 points, or 0.50 percent, at 25,824.05.
