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Sensex falls heavily, reaches below 50 thousand

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Mumbai. On Monday, the stock market has recorded a steep decline for the fifth consecutive day. The 30-share index Sensex ended 1145 points down (-2.25%) at 49,744 and the 50-share index Nifty closed down 306 points (-2.04%) at 14,675. The stock market began to decline from 16 February, which has continued continuously. For the first time in three weeks, the Sensex has come down to 50 thousand. The market cap of BSE listed companies has now come down to Rs 200.19 lakh crore. It was Rs 203.98 lakh crore last week. Thus, investors lost Rs 3.79 lakh crore on Monday.

Market selling dominates –
The top-30 of the Sensex saw only three stocks rising, while 27 stocks ended with a fall. Experts about the dominating selling in the market say that there are many factories behind it. The market is positioning itself in a strong position, causing an immediate downward trend. The 10-year bond yield in the US has increased and has reached 1.36 per cent.

Poor performance
Last week, the market capitalization of eight of the country’s 10 most valuable companies declined by Rs 1.23 lakh crore. The Sensex lost 654.54 points in the previous week. Among the top 10 companies, only Reliance Industries and State Bank of India registered gains. The largest decline was in Tata Consultancy Services and its market valuation declined by Rs 44,672.14 crore.

Danger of increasing inflation rate –
Experts say that the stock market is showing decline due to the sudden rise in global and domestic bond market. Investors are booking profits. This week India’s 10-year bond yield has gained 17 basis points. When the bond rate, or the interest rate on a bond, increases, it has a direct effect on the stock market boom.

Global markets also fluctuate-
Like India, the markets of the world too did not do well on Monday. Most of the decline was recorded. In the global market, Hong Kong’s Hangseng index closed 414 points down and China’s Shanghai Composite Index closed down 53 points. Korea’s Kospi index has closed down 27 points at 3,079. On the other hand, Japan’s Nikkei index has gained 153 points to close at 30,171. Earlier, the American stock market also closed flat.

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