Mcap of stock market below three lakh crore for the first time in nine months

Mumbai: With global markets engulfed by the banking crisis of America and European countries, a crisis of confidence has arisen in the stock markets. As a result, the sentiment in the Indian stock markets has also collapsed. Foreign Portfolio Investors (FPIs), FIIs continued heavy selling in the Indian stock markets with many stocks falling to fresh 52-week lows.

As the crisis of confidence among investors continues to increase the selling pressure, now India's market capitalization-investors' assets, i.e. the aggregate market capitalization of the companies listed in BSE, has decreased today for the first time in the last 9 months to the level of three lakh crore dollars.

The month of March has seen continued softness in global markets with the banking crisis. There are three days left for the financial year 2023. Investors are starting to suffer losses as prices fall in many stocks. Domestic Institutional Investors (DIIs) have continued to be net buyers of stocks against the trend, but these local funds' purchases have not stopped the market from falling. Retail investors are moving away from the market as it becomes uncertain when new bubbles will burst in the banking crisis on the global front.

India's market capitalization has fallen to the lowest level since June 23, 2022, today on Monday, March 27, 2023, at the level of 2.99 lakh crore dollars. Which in rupees is at the level of Rs.253.59 lakh crores. With this, India has come to the sixth position in the top 10 countries with the highest market cap. From the beginning of this year till now the market capitalization has decreased by 300 billion dollars.

In the current financial year 2022-23, the market capitalization of the Indian stock markets which was Rs.288.50 lakh crore at the end of November 30, 2022, has decreased to Rs.253.59 lakh crore. According to which there has been a decrease of Rs.34.91 lakh crore in four months.

The market capitalization of America has been 41.83 lakh crore dollars. After that, China's is 10.67 lakh crore dollars and Japan's is 5.59 lakh crore dollars. Hong Kong has a market capitalization of 5.35 trillion dollars at the fourth position. While France is in the fifth position with a market cap of 3.06 lakh crore dollars. It is worth mentioning that last week the US Central banks including the Federal Reserve, Bank of England raised interest rates again to control inflation.

The European Central Bank raised 50 basis points. While the Swiss National Bank also increased the interest rate by 50 basis points. The global banking crisis is now rapidly easing. News that First Citizen Bank is buying Silicon Valley bank deposits and loans from the FDIC and the German government's confidence that Deutsche Bank won't collapse has led to hopes of an easing of the crisis. But as the financial year 2023 is about to end, the market capitalization is continuously eroded due to continuous falling prices in the stocks.