The market in India experienced a significant decline on March 13, 2024. Sensex and Nifty, both of which are key market indices, saw a significant drop today.
Sensex ended the day by going down 906.07 points (1.23%) and closed at 72,761.89, whereas Nifty 50, which also went down, faced a loss of 338 points (1.51%) and closed at 21997.70. Both of these measure the performance of the stock market by tracking the prices of some selected companies, but what caused it?
3 Reasons That Caused Crash?
1. Global Sentiments
Negative sentiments in the global market played a role in today’s decline. There are various factors involved, like geopolitical tensions, economic uncertainties, and concern about inflation.
2. US Federal Reserve
Investors were expecting a delayed interest rate cut by the US Federal Reserve, and these expectations went downhill and affected market sentiments. Lower interest rates generally lead to economic growth and investments.
3. US Inflation Data
Investors are concerned that US inflation data can be higher than expected. Inflation takes away the purchasing power of people and can lead to higher interest rates, which negatively affect the stock market.
FMCG’s Performance
The Fast Moving Consumer Goods (FMCG) sector saw a gain despite the overall market decline. FMCG produces end-consumer products like food, beverages, toiletries, etc. Analysts are concerned that rural expenditure can be a reason affecting their sales.
Other sectors like metal, media, etc. experienced significant losses; this indicates a broad decline across various industries.
Stock’s Performance
Some individual stocks like ITC, ICICI Bank, Nestle India, and Kotak Mahindra Bank performed well; they showed resilience and did not follow the market’s decline. Although some stocks like Tata Steel, Tata Motors, Power Grid Corp., and NTPC faced notable declines
Other Indices
Other market indices like BSE MidCap and BSE SmallCap Also experienced losses for the 3rd day in a row; this shows a widespread decline in the market, which not only affected large midcap companies
