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Even though there is a decline in the stock market, this decline is not as big. The estimate was much more than this. Many important factors worked to protect India's stock market from deep dive. Although many reasons for the decline in the stock market are being told to the investors of the country, but there is a need to understand the reasons, due to which the level of decline in the stock market did not reach 1000 or 1500 points.

This means that the loss of the stock market investors did not become 10 to 12 lakh crore rupees, the loss of only 5 lakh crore rupees was reduced. The special thing is that the Sensex trading with a decline of more than 600 points is seen trading amidst 450 to 500 points.

Now the biggest question is, which are the 7 reasons, due to which there was no major decline in the stock market. According to experts, the biggest reason for this is the improvement in GST. Because of which the stock market has got support. Crude oil prices remain below $ 70, which are still favorable for India. There has been an increase in demand during the festive season. The effect of which is also being seen in the stock market. The hopes of fed rate cut have also created a positive sentiment in the stock market.

There is a steady increase in shopping of local investors. In the coming days, the country's largest Reliance Industries can announce the IPO of its telecom company. This sentiment is also enough to boost the stock market. At the same time, global rating agencies still have confidence in India's economy. Because of which the stock market is getting support. Let us discuss in detail for stock market figures and these reasons.

Stock market falls less than expected

There is a decline in the stock market at 12.10 pm, but not as much as it is expected. Looking at the data, the Bombay Stock Exchange's major index Sensex was trading at 81,075.05 points with a decline of 550 points. Whereas during the trading session, the Sensex fell by about 700 points to 80,940.67 points. Whereas due to the threat of 50 percent tariff, the knowledgeable stock market was estimated to fall from about one and a half to two percent i.e. 1200 to 1500 points.

On the other hand, Nifty, the major index of the National Stock Exchange, was trading at 24,802.05 points with a decline of 165.70 points. Which came to the lower level of the day with 24,755.60 points during the business session. However, a day before, the Nifty crossed the psychological level of 25 thousand marks. Although the Nifty was estimated to have a decline of more than 300 points, but this figure was seen in a limited range.

When we are talking about low decline, there is also the reason for this. If you look at the last few days, the decline of 500 to 600 marks has also been seen in normal days. Tuesday is very important for 50 percent of tariffs. Which will be implemented late at night. So far, there has been no talk of reducing or eliminating it. This is the reason why experts were estimating a big decline on this day.

These 7 reasons were saved from the high decline in the stock market?

1. Announcement of GST Reform: On August 15, PM Narendra Modi announced the GST reform from the ramparts of the Red Fort. Under which it is proposed to keep only 5 and 18 percent tax in GST slab. It is being said to remove the slab of 12 and 28 percent. At the same time, a special slab of 40 percent will be kept for some products. Experts estimate that the change in GST slab will make a lot of goods cheaper and will increase the consumption.
2. Crude oil declines: Crude oil prices in the international market may be on 2 weeks of peak, but the prices still remain below $ 70 per barrel. Due to which there will be not much effect on India's import bill. If we look at the data, Brent crude oil is trading at $ 68 per barrel and US oil is trading at $ 64 per barrel.
3. Demand increased from festive season: According to experts, there is an increase in demand during the festive season. Many people are busy shopping before coming to Pitrupaksha. On the other hand, sellers are also storing a lot of goods to fulfill the demand coming after Pitrupaksha. According to experts, this demand is supporting the stock market.
4. Fed rate cut will increase FPI inflow: The policy meeting of the US Central Bank Fed is going to be held on 16 and 17 September. In which it is estimated that the interest rates may see a reduction of 0.25 percent. The stock market of India is also expected to benefit. Foreign investors can return to India's stock market after the rate cut. By the way, in the current year, foreign investors have withdrawn more than Rs 1.17 lakh crore from the stock market.
5. Shopping for retail investors: On the other hand, the purchase of DII is constantly being seen. Between January and July, load tiyas have invested more than Rs 4 lakh crore in the stock market. The effect of which is also clearly seen in the stock market and is preventing the market from sharp decline.
6. Live IPO: August 27 is the AGM of the country's largest company. Mukesh Ambani, chairman of Reliance Industries, can announce the IPO of his telecom arm Jio in this AGM. Which can be the largest IPO in the country. According to experts, this news is also working to give positive energy to the stock market.
7. Foreign rating agencies trust India: On the other hand, the trust of foreign rating agencies is still completely confident in India's economy. S&P has recently positive India's rating. At the same time, Fitch and Moody's may not have made any changes in the rating, but the country's economy and trump tariff have not been affected.

What do you say?

Or Anuj Gupta, director of Wealth Global Research, said that India's stock market has become quite matured. 50 percent tariff stock market has already digested. Due to which there is not much decline in the stock market. On the other hand, the market is also aware that this tariff will not remain for long. Negotiations about the trade deal between India and America continue. Which is expected to reach the end soon. On the other hand, crude oil prices are still favorable. There has been a positive sentiment in the market since the announcement of the GST reform. Also, Mukesh Ambani can announce an IPO of his telecom arm. He further said that foreign rating agencies have also maintained trust in India's economy.