Share Market Crash: The Indian stock market experienced a significant drop on Tuesday (17 December). The Sensex dropped by 800 points, while the Nifty decreased by 250 points during initial trading. Significant selling occurred in blue-chip shares such as Reliance Industries and HDFC Bank.
These companies experienced the most significant drop
Among the blue-chip group of 30 stocks, Reliance Industries, Bharti Airtel, Nestle, Larsen & Toubro, Bajaj Finserv, HDFC Bank, JSW Steel, and Titan experienced the most significant drop. Simultaneously, Tata Motors, Adani Ports, Tech Mahindra, HCL Technologies, and Hindustan Unilever showed positive performance.
Let you know about the key factors contributing to the drop in the stock market
Global stock markets are eagerly anticipating the outcomes from the US central bank, the Federal Reserve (Federal Open Market Committee). As a result, Indian investors are also exercising caution. The market already thinks that a 25 basis point reduction in interest rates will occur less frequently. Consequently, attention will now be focused on the remarks of Federal Reserve Chair Jerome Powell. Should he refrain from making market-friendly remarks, the downtrend could persist.
Crude oil costs have increased over the past few days as well. It has increased by approximately 2 percent over the past five days. This is likewise raising the worries of investors. Amid geopolitical tensions and uncertainty leading up to the federal rate decision, crude oil prices are experiencing an increase. As a result of US sanctions on Iran and Russia, the supply of crude oil is anticipated to be affected. This is similarly leading to an increase in crude oil prices. The Indian rupee is consistently depreciating in value against the dollar.
It hit a record low of Rs 84.92 on Tuesday. India’s trade deficit surged by a significant $37.8 billion in November. This is also anticipated to heighten pressure on the rupee. It will achieve a value of 85 compared to the dollar.