RBI repo rate cut, liquidity support of about Rs 1.5 lakh crore to banks and neutral stance were all the reasons due to which a rise in the stock market was expected on Monday, but it did not happen. Destroying the sentiments of the common people, the stock market took such a dive that within a few hours about Rs 8 lakh lakh crore of common investors were lost. If we look at the data, there was a fall of more than 800 points in Sensex. Whereas Nifty showed a decline of more than 280 points.

According to experts, due to the fall in the shares of Indigo, the sentiments turned quite bad. On the other hand, Fed meeting is going to be held next week. In which there is a possibility of a reduction of 25 basis points, but the central banks of other countries of the world can press the pause button on the interest rates. In such a situation, a very cautious approach is being adopted by the investors. Apart from this, fall in rupee and rise in crude oil prices are also the main reasons for the decline in the stock market. Let us also tell you at what level Sensex and Nifty are trading?

Sensex and Nifty crashed

A big decline is being seen in the stock market on Monday. Bombay Stock Exchange's main index Sensex fell by 805.47 points to 84,906.90 points. Whereas today the Sensex opened at 85,624.84 points. On Friday, the Sensex closed at 85,712.37. However, at 2 pm the Sensex is trading at 84,969.11 points with a fall of about 745 points.

On the other hand, the main index of National Stock Exchange, Nifty is also trading with a huge decline. During the trading session, Nifty fell by about 280 points to 25,922.10 points. Whereas Nifty opened with 26,159.80 points. However, at 2 pm, Nifty is seen trading at 25,932.60 points with a fall of 253.60 points.

Stock market fell due to these five reasons

1. Indigo spoiled the sentiment: Indigo's crisis is not over yet. The government has sent a notice to Indigo. If no response is received, major action may be taken. Also, Indigo flight cancellations have not ended yet. Due to which Indigo shares have seen a decline of up to 7 percent on Monday.
2. Vigilance before US Fed meeting: Investors are adopting a very cautious approach before the two-day Fed meeting starting from December 9. Devarsh Vakil, Head of Prime Research, HDFC Securities, said investors are being cautious ahead of the upcoming FOMC meeting, release of excess inflation and year-end portfolio adjustment. He further said that the central banks of Australia, Brazil, Canada and Switzerland are also going to meet this week, although no central bank outside the Fed is going to make policy changes.
3. Selling by foreign investors: Foreign institutional investors continued their selling spree on Friday, selling shares worth Rs 438.90 crore – the seventh consecutive session of net outflows. However, in the month of December, foreign investors have withdrawn more than Rs 11 thousand crores.
4. Rupee decline: Due to high crude oil prices and continuous withdrawal of foreign funds, the rupee weakened by 16 paise to 90.11 against the US dollar in early trade. According to forex dealers, the local currency opened at 90.07 but declined further due to strong dollar demand from corporates, importers and foreign portfolio investors.
5. Crude oil rise: In the international market, Brent crude, the crude oil of Gulf countries, increased by 0.13 percent to reach $ 63.83 per barrel. High crude oil prices add pressure to India's import bill and fuel inflation concerns often create an atmosphere of caution in the stock market.

Investors lost Rs 8 lakh crore

Due to this decline in the stock market, investors have also suffered huge losses. The loss of investors depends on the market cap of BSE. If we look at the figures, when the stock market closed on Friday, the market cap of BSE was Rs 4,70,96,826.75 crore. Which came to Rs 4,63,01,207.86 crore during the trading session on Monday. This means that the market cap of BSE suffered a loss of Rs 7,95,618.89 crore.