The decline of the Indian stock market continues. Even today a decline is seen in Sensex and Nifty. While Sensex was trading at 79,411, down 130 points, while Nifty was trading at 24,140, down 57 points. In Nifty Bank a decrease of 250 points is observed. While a day earlier, Sensex had fallen by 900 points and Nifty had fallen by about 300 points. The question on everyone’s mind is why is the Indian stock market collapsing so badly? What are those reasons? So the market decline shows no signs of stopping.
This also at a time when the Trump government has been formed in the United States and some experts were saying that this will stop the decline and there will be a rebound. Although this happened, this rally could only last for 1 day. At the same time, the Federal Reserve Bank is continually cutting rates to control inflation. The rate has been reduced again after September. This time the Federal Reserve Bank has reduced the rate by 25 basis points.
So why is the stock market falling?
The effect of Trump’s victory and rate cut is not visible in the Indian stock market. Because there are some major and very important reasons for the fall of the Indian stock market. Nifty 50 has fallen 3.56 per cent in a month. Let us know the reasons why the stock market is crashing…
- The main reason is the companies’ poor quarterly results. The results of many companies have been poor, so there is constant pressure on the market.
- Foreign investors had withdrawn a record amount of over Rs 1 lakh crore in the last month, which continues this month as well. Foreign investors are continuously withdrawing money from the Indian stock market.
- Even after the Fed’s rate cut, the RBI is still unclear whether it will cut interest rates or not. That is also why investors are confused and there is pressure.
- Today China may announce an additional relief package of Rs 10 lakh crore. In such a situation, it is estimated that if China takes these measures to strengthen its economy, foreign investors will turn to China. Due to this, a further decline is dominating the market.
Nifty has fallen more than 9 percent
Nifty fell 9.4 percent from its peak in late September to its lowest level on Monday, while the Nifty Midcap 100 index and the Nifty Midsmall Cap 400 index fell 10.2 percent and 9.7 percent percent respectively from its maximum on September 24 to its minimum on October 25. .They have arrived. Jefferies said there continues to be strong capital inflows into domestic equity mutual funds.
