Sensex crashes over 650 points, investors lose ₹4 lakh crore— Why is stock market falling? Explained with 5 key factors
The Indian stock market saw a sharp intraday selloff on Thursday, February 19, as investors booked profits across sectors after recent gains.
The Sensex crashed over 650 points, while the Nifty 50 dropped to an intraday low of 25,586 during the session.
The broad-based selloff impacted second-rung mid- and small-cap indices, as the BSE mid- and small-cap indices also dropped by more than half a per cent each.
Investors lost about ₹4 lakh crore as the overall market capitalisation of BSE-listed firms dropped to nearly ₹468 lakh crore during the day from ₹472 lakh crore in the previous session.
Why is the stock market falling? 5 key factors
Let’s take a look at five key factors that could be behind the stock market crash on Thursday:
1. Profit booking after recent gains
The domestic market is seeing some profit-taking after recent gains. On Wednesday, the Sensex and the Nifty 50 extended gains for the third consecutive session. With major macro triggers, including the Budget, India-US deal, and RBI policy, behind and the Q3 results season over, the market is witnessing stock-specific action amid a lack of fresh domestic triggers.
(This is a developing story. Please check back for fresh updates.)
