Stock Market Crash: ₹50 Lakh Crore Gone… But Signs Of Recovery Ahead? | FII Selling Spree Slows | Mint Primer

The Indian stock market has crashed in recent weeks, with the Sensex and Nifty losing over ₹50 lakh crore in market capitalisation.

The crash has been attributed to a number of factors, including the ongoing COVID-19 pandemic, the war in Ukraine, and rising inflation.

However, there are also some signs of recovery ahead. The FII selling spree has slowed down in recent weeks, and the government has taken steps to support the market.

FII Selling Spree Slows

Foreign institutional investors (FIIs) have been net sellers of Indian stocks in recent months. In March, they sold a record ₹1.5 lakh crore worth of stocks.

However, the pace of selling has slowed down in recent weeks. In April, FIIs sold ₹50,000 crore worth of stocks, and in May, they sold ₹25,000 crore worth of stocks.

This slowdown in selling is a positive sign for the market. It suggests that FIIs are becoming more confident in the Indian economy.

Government Support

The government has taken a number of steps to support the stock market. These steps include:

• Announcing a ₹15 lakh crore stimulus package
• Cutting interest rates
• Providing liquidity to the market

These steps have helped to stabilise the market and prevent a further crash.

Signs Of Recovery

There are a number of signs of recovery ahead for the Indian stock market. These signs include:

• The FII selling spree has slowed down
• The government has taken steps to support the market
• The economy is expected to recover in the coming months

Investors should be cautious, but there are reasons to be optimistic about the future of the Indian stock market.