Why is the stock market falling so much? Now this question arises in the minds of almost all small and big investors, because for the last 3-4 years retail investors had not faced such a decline. Statistically speaking, after the Covid period, October 2024, i.e. the current month, turned out to be the worst for the stock market. In such a situation, it is natural for investors to get nervous.
In fact, investors are facing huge losses every day because the hope is that the decline will stop now, but it is not happening, the decline continues. Even on Thursday there were fluctuations in the market. Sensex, a 30-share Bombay Stock Exchange, initially jumped 135 points but fell soon after. At 2:30 pm the Sensex had lost 80 points and was trading around 80,000. While Nifty has fallen 54 points and is trading around 24380.
If we look at the data, in just a few weeks the Sensex has lost around 6000 points, while the Nifty has lost around 1900 points. In such a situation, investors respond with patience. During this period, mid-cap and small-cap stocks suffered the most. All popular stocks have fallen 40 to 50 percent from their peak. For example, OLA Electric stock has fallen to Rs 80, while its all-time high is Rs 156. NHPC shares have fallen by approximately 35%, BEML by 35% and Voda-Idea by more than 50%.
Now the question arises why the market is falling like this and where can you turn to find support. According to experts, there are three main reasons behind this huge market decline, the main one being the second quarter results.
main reason- Because second quarter results were not as expected, stocks with weak results are being hurt. So stock market sentiment continually deteriorates. Especially the results of the automotive sector, the consumer goods sector and some technology companies have been a hard blow to the market.
Second reason- Foreign institutional investors are continuously withdrawing money from the Indian market, while domestic investors are not buying at that rate. Until a few months ago, when there were sales by FIIs, large purchases were seen as national investments used to do. Get it. But this time that’s not happening. In the last one month, FIIs have withdrawn around Rs 1 lakh crore from the Indian market.
In fact, due to the continuous announcement of economic packages in China, some foreign investors are withdrawing money from the Indian market and moving towards China, thereby dominating the market decline.
