Stock Market Crashes 1688 Points, Rs 7.5 Lakh Cr Lost: 3 Reasons Why This Happened?
On Friday, the BSE Sensex and Nifty both ended substantially lower, in line with other global markets. The BSE benchmark Sensex ended with 1,687.94 points (2.87%) lower at 57,107.15, while the NSE barometer Nifty50 index ended the day 509.80 points (2.89%) worse at 17,026.45.
Top Losers And Top Gainers
JSW Steel is down by 7.67 per cent, followed by Hindalco and Tata Motors, which plummeted 6.75 per cent and 6.59 per cent, respectively. Other notable losers in the 50-share index included IndusInd Bank, Adani Ports, BPCL, Maruti Suzuki, ONGC, Tata Consumer Products, NTPC, Bajaj Finance, HDFC, Titan Company, Grasim, M&M, and SBI.
Cipla led the Nifty gainers with a 7.15 per cent gain, Dr Reddy’s Labs and Divis Labs with 3.31 per cent and 3.03 per cent gains, respectively. Nestle, TCS, and Asian Paints were the Nifty’s other three gainers.
Possible Reasons For The Fall
There are several reasons for the fall and one of the major reasons is the highly mutated new variant of the novel Coronavirus – B.1.1.529 was reported from South Africa which spooks global investors.
New Covid Variant – B.1.1.529
There is a new variant of the novel Coronavirus – B.1.1.529 was reported from South Africa.
Almost 59 confirmed cases have been reported in South Africa, Hong Kong and Botswana so far. The United Kingdom, Singapore, Czech Republic, Israel and Italy are among the countries that have announced restrictions on travel to and/or entry of travellers from South Africa.
Countries across Asia and Europe have announced travel restrictions on Friday.
UK Bans African Flights-Indian Govt Issues Alert!
The United Kingdom has added six African countries to its red list: South Africa, Namibia, Lesotho, Eswatini, Botswana, and Namibia.
“We’re reviewing our South Africa schedule and if your flight or holiday is subject to cancellation, we’ll be in touch with your options, including a refund.”
British airline Virgin Atlantic put out a notification saying
“COVID-19 UPDATE: UKHSA is investigating a new variant. More data is needed but we’re taking precautions now. From noon tomorrow, six African countries will be added to the red list, flights will be temporarily banned and UK travellers must quarantine,”
UK Secretary of State for Health and Social Care tweeted.
Health Secretary Rajesh Bhushan said in a letter to all states and UTs on Thursday.
“lt is therefore imperative that all international travellers travelling from and transiting through these countries (they are part of the “at-risk” country category of international travellers coming to India) and also including all other “at-risk” countries located in the revised guidelines for international arrivals issued by this ministry dated 11.11.2021 are subjected to rigorous screening and testing, as per Health Ministry guidelines,”
Rising Inflation In The US
With a 6.2 per cent annual inflation rate in October, the United States is now experiencing the highest rate of price increases in more than 30 years. Inflation is defined as a general increase in the cost of all consumer goods and services.
Not just in the US, in most of the countries, people saw a supply chain crisis and some major changes in consumer demand.
“We are making progress on our recovery. Jobs are up, wages are up, home values are up, personal debt is down and unemployment is down,” Biden said the day October’s inflation numbers were released. “There is no question the economy continues to recover and is in much better shape today than it was a year ago.”