The stock market experienced a decline for the seventh consecutive day on Monday. This is the first time after March 2023 that the stock market has suffered such a continuous loss. But this series of losses has not yet stopped. If we look at the data, Sensex has fallen by 3.75 percent in 7 trading sessions. On the other hand, the main index of the National Stock Exchange, Nifty, has fallen by more than 4 percent. The special thing is that stock market investors have suffered a loss of Rs 23.50 lakh crore in these 7 days.
On the other hand, experts predict that there will be new falls in the stock market in the coming days. Top Reasons Why Fed’s Stance on Interest Rates, Rising Dollar Index, Q2 Corporate Profits, Rising Inflation Figures, and FII Withdrawal May Hurt to the stock market. Let’s analyze this in detail.
There was devastation in the stock market in 7 days
There has been no less devastation in the stock market in the last 7 trading days. According to the data, last time in the current month, Sensex and Nifty closed higher on November 6. After this, in 7 trading sessions the Sensex fell by 3,039.12 points. On Monday, the Sensex closed at 77,339.01 points. This means that the Sensex has seen a decline of 3.78 per cent since then. On the other hand, it has fallen more than 10 percent from its all-time high.
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On the other hand, the main index of the National Stock Exchange, Nifty, has fallen significantly in the last 7 trading sessions. The last time Nifty saw a surge was on November 6. Nifty was then seen at 24,484.05. Since then it has experienced a decrease of 1,030.25 points. This means that Nifty has suffered a loss of 4.21 percent in the last few trading sessions. At the same time, Nifty has fallen about 11 per cent from its all-time high.
big loss for investors
If we talk about investors, a huge drop has been observed during this period. According to the data, investors have lost more than Rs 23 lakh crore in the last 7 trading sessions. The market capitalization of BSE was Rs 4,52,58,633.53 crore on November 6, which reduced to Rs 4,29,08,846.36 crore on Monday i.e. November 19. This means that investors have suffered a loss of Rs 23.50 lakh crore so far in 7 business days. When Sensex was at its highest, the market capitalization of BSE was Rs 4,77,93,022.68 crore. Since then, there has been a loss of up to Rs 48.90 lakh crore.
The stock market can fall for these 5 reasons
Fed’s stance on interest rates: Recently, Nomura has estimated that the US Federal Reserve will not make any changes to interest rates in the month of December. At the same time, a reduction of only 50 basis points is possible until June next year. After that no changes will be seen until 2026. If this happens, pressure may be seen in the US stock market. Whose effect can be visible in the Indian stock market.
Dollar index rise: The Federal Reserve’s failure to cut interest rates means a rise in the dollar index. Still, following Donald Trump’s victory, there has been a lot of strength in the dollar index. In the last month, the dollar index has seen an increase of more than 2 percent. On the other hand, the dollar index increased by 4.67 percent in 3 months. It is estimated that the dollar index may reach the level of 107 to 108. Therefore, selling pressure can be observed in the stock market.
Companies’ second quarter results: The second quarter numbers of Indian companies are considered poor, the impact of which will be seen more in the stock market in the coming days. Many companies are in losses. According to the report by the research company Jefferies, of the 121 companies analyzed, around 63 percent, that is, 75 companies, could experience a decrease in their profits this year. The special thing is that the results of the country’s companies may be bad in the coming quarters.
Inflation figures on the rise: Rising inflation figures in India may put more pressure on the stock market. In the month of October, the country’s retail inflation hit a 14-month high of 6.21 percent. Which will probably be around 6 percent in the month of November. This means that inflation may affect the country even more in the coming months and a drop in the stock market may be observed.
FII Withdrawal: Although the withdrawal of money from the Indian stock market by foreign investors may have slowed down a bit, there is no sign of any hindrance in the coming days. Even on Monday, FIIs withdrew around Rs 1,500 crore from the stock market. So far in the month of November, foreign investors have withdrawn Rs 23,913. On the other hand, in October and November together, foreign investors withdrew around Rs 1.18 lakh crore from the stock market.
