Be it a country’s GDP or GST collection or income tax and corporate tax collection, data is very important. When it comes to the stock market, data becomes even more important. How much did the Sensex fall, how much did the Nifty rise or how many lakhs of crores of rupees did investors lose? Data is very important in everything. There is a lot of buzz in the stock market today as the Nifty continues its 8th straight week of decline.

Nifty has lost more than 7.50 percent before completion of 8 weeks. That too at a time when NSE had its IPO recently and was listed on BSE. During this period, the valuation of NSE or its substitute investors was Rs. 39 lakh crores has been lost. Let’s try to understand from the data what kind of decline was observed in Nifty. At what level was Nifty 8 weeks ago? At what level is it trading now? How and how much have investors lost during this period?

How much Nifty fell at the end of 8 weeks?

If we look at the data of the National Stock Exchange, Nifty has seen a decline of 7.78 percent since August 7. Nifty was at the level of 24570.65 points when the stock market closed on 7th August. While on September 30 Nifty appeared at the low of the day of 22659.80 points. This means that the Nifty has seen a decline of 1,910.85 points before the completion of 8 weeks.

If we talk about the entire 7 weeks, Nifty has seen a decline of 5.82 percent. The Nifty had touched a level of 23140.50 when the stock market closed on September 25. In such a situation, the Nifty has seen a decline of 1,430.15 points in 7 weeks after 7th August. If we talk about the current week, the Nifty has seen a decline of more than 2 percent i.e. 480.7 points.

Thus the level of Nifty is continuously decreasing.

As we told you earlier that Nifty was at 24570.65 points on 7th August, after which Nifty lost 204.65 points in the first week to close at 24366 points on 14th August. The second week saw a decline of 114 points and on August 21 the figure slipped to 24252 points. The decline eased slightly in the third week and the Nifty fell to 24175.65 points on August 28 with a loss of 76.35 points. The fourth week saw a major decline of 277.95 points and on September 4 the Nifty fell to 23897.70 points.

In 5 weeks, the Nifty fell by a further 499.6 points to settle at 23398.10 points on September 11. The Nifty saw a marginal decline of 51.7 points in 6 weeks and on September 18 Nifty was seen at 23346.40 points. In 7 weeks, Nifty again witnessed a huge decline of 205.9 points to settle at 23140.50 points. Not yet 8 weeks have passed and a drop of up to 480.7 points has been seen. The Nifty hit an intra-day low of 22659.80 points on September 30.

How much did investors lose?

Investors have suffered heavily due to the continuous fall in the main stock market index Nifty. Let us try to understand this in terms of statistics. First of all, let us tell you that the loss of investors is related to the decrease in the market cap of NSE. On September 30, when Nifty was at its intra-day low, Nifty’s market cap was Rs 465.11 lakh crore. On August 7, Nifty’s market cap was Rs. 504.33 lakh crore was seen. This means that before the end of 8 weeks, Nifty’s market cap is Rs. 39.22 lakh crore was reduced. On September 25, Nifty’s market cap was Rs. 474.98 lakh crores. This means that in 7 weeks the Nifty’s valuation has increased by Rs. 29.35 lakh crore was reduced. If we talk about the current week, there has been a loss of 9.87 lakh crore rupees.

Will the 25-year record be broken?

With a week off, the Nifty 50 is nearing a milestone which was last seen 25 years ago. After closing with a loss for the seventh consecutive week, if the market does not rally this week, the benchmark index will register losses for the eighth consecutive week. This would be the longest period of consecutive decline since 2001, when the Nifty fell for nine consecutive weeks.

However, the current decline is much less severe than earlier, more protracted declines. The Nifty50 was at 23,140.5 at the end of the week ending September 25 and the seven-week total loss was 5.8 percent. That compares with losses of 20.5 percent in the seven-week period ending September 21, 2001, 22.1 percent in the seven-week period ending July 4, 2008, and 33.3 percent in the seven-week period ending April 3, 2020. The week ending in April was the longest period of consecutive declining week, down 23.3 percent. 1993, when it fell to 22.9 percent.

The Nifty also fell for nine weeks in the period ending April 13, 2001 and suffered a loss of 27.1 percent. The Nifty50 was officially launched on April 22, 1996, while earlier period calculations were carried out later. Before this week, the benchmark had fallen for seven or more consecutive weeks only four times in the past 25 years—in 2020, in 2008 and twice in 2001. The prospect of an eighth straight week of declines has turned a normal market decline into a record event.