Reasons Behind Today’s Market Fall

In the early hours of the stock market opening bell, Dalal Street experienced a dip in the sensex by 500 points and nifty took a dive to a new low of 19,400 mark. The reasons can be stated in brief.

The Reserve Bank of India has made some policy review additions that lead to the investors anxiety.

Foreign Institutional Investors, FII, sold stocks heavily as the US interest rates spiraled. With the sale of shares aggregating to INR 2,034.14 crore the market is expected to  take a bearish trend in the time to come. 

As a result, the benchmark stock indices experienced a steep dive on Wednesday.

Experts say that for the existent downward trend, the primary drivers were weak global cues, and the offload of  the shares by the FIIs. 

The global financial markets rattled with the US interest rates and that led to a fall in the US stock markets indices.

Further in India, the new economic data release on interest rates  by the Federal Reserve has triggered uncertainty and it caused a decline in Sensex/Nifty stock prices.

The global markets created instability and its effect entered into the NSE/BSE domestic markets making the stocks stumble. 

With the fall in the Sensex/Nifty, many sectoral indices like Nifty Bank, Nifty IT, Nifty Auto encountered loss plummeting by 1.4 %.

In the broader context, an increase in the crude oil barrels, strengthening of the US dollar, and overall fragility of the global economy has created an atmosphere of caution.

Devan Mehata, a research analyst advises investors to make a greater selection of stocks in a selective manner before moving forward to make an investment.