India’s stock market experienced a significant fall on Wednesday, February 14, 2024, as the Sensex plunged over 600 points and the Nifty dipped below 21,600. This was driven by the US inflation data, which pushed back the expectations of interest rate cuts by the US Federal Reserve. The mid and smallcap indices also suffered heavy losses, falling by around 3%. Some of the factors that contributed to the market crash were:

  • The fear of rising bond yields and inflation in the US and other major economies
  • The uncertainty over the fiscal stimulus package in the US and its impact on the global economy
  • The profit booking by investors after the recent rally in the Indian market
  • The weak performance of some of the key sectors such as banking, IT, auto, and metals
  • The geopolitical tensions between India and China over the border dispute
  • The rising cases of Covid-19 and the emergence of new variants in some parts of the world

The market crash has eroded the wealth of investors and created a sense of panic among them. However, some experts believe that this is a temporary correction and the market will bounce back soon. They advise investors to remain calm and focus on the long-term prospects of the Indian economy, which is expected to grow at a robust pace in the coming years. They also suggest that investors should use this opportunity to buy quality stocks at attractive valuations and diversify their portfolio across sectors and themes.

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