The stock market recorded a major fall on Monday. The BSE Sensex had dropped 2037.61 points in the afternoon to reach the day’s low of 44,923.08. However the index finally closed down 1,406 points at 45,553.96. Earlier on May 4, the Sensex had lost 2002 points to close at 31,715. Today, the total market of BSE stood at Rs 178.79 lakh crore, which was Rs 185.36 lakh crore on Friday. That is, the total market today decreased by Rs 6.57 lakh crore.
Market analyst Amrish Baliga believes that today’s decline in the market is a bit difficult to call a halt or profit-booking. The GDP-market cap ratio is around 95%, which is a bubble zone. However it reached 150% in 2007. He also cautious, reminding the 2008 Financial Crises.
On the other hand, Deven Choksey, group managing director of KR Chowki Investment Managers, said that any fall in the market gives buying opportunities to investors.
Decline in Asian Markets
Today Hong Kong’s HangSeng Index of Asian Markets closed down 191 points at 26,306. Japan’s Nikkei index closed down 48 points at 26,714. While the Shanghai Composite Index of China has gained 25 points to close at 3,420.