Investors Wealth Loss: On Monday morning, there was an uproar in the stock markets around the world due to signs of increasing interest rates further by Jerome Powell, the head of the US Central Bank Fed Reserve. Heavy selling was seen in Asian markets, due to which the Indian stock market and its investors have also suffered. On Monday, the Indian market fell upside down. Due to which the investors of the stock market got lost in minutes of about Rs 4 lakh crore.
When the Indian stock markets closed on Friday, the market capitalization of the Mumbai Stock Exchange was close to Rs 277 lakh crore. But due to heavy selling in the market on Monday morning, the market cap of BSE listed stocks came close to Rs 273 lakh crore. In fact, the head of the Fed Reserve, Jerome Powell, has said that the brunt of tightening inflation may have to be borne by the common people in the form of expensive loans. The signal is clear that interest rates in America are going to increase further. The stock market had to bear the brunt of his statement. Foreign investors are selling.
Indian markets were also open in the morning with a fall. Sensex 1466 and Nifty opened after falling about 400 points. However, the market has bounced back from the lower levels. At present, Sensex is trading with a fall of 740 and Nifty 250 points. But the Indian market is worried that if interest rates increase in America, then RBI may increase interest rates in India.
After the statement of the head of the US Fed Reserve, the rupee seems to be weakening again against the dollar. This is only because foreign investors can pull back the investment again.
read this also