stock marketImage Credit source: Symbolic photo
A bullish start on Monday and a slow start on Tuesday. No one had predicted that in the next two hours after 10:30 in the morning, the stock market would reach its lowest point of the day. By around 12:30 pm, Sensex and Nifty had fallen well below the day's peak. Especially a fall of more than 600 points has been seen in Sensex. This means that the main index of BSE was down by more than 600 points from the peak of the day. Due to which stock market investors suffered a loss of Rs 3.74 lakh crore.
In fact, decisions taken by RBI on ECL, rise in crude oil prices, fall in rupee, expiry date of Nifty and geo-political tension are all the things due to which the stock market is once again witnessing a decline. Experts believe that the deal of Sun Pharma and Reliance shares a day earlier had helped in lifting the stock market. But today the banking sector, especially the public sector banks, are leading the stock market decline. Let us also tell you what kind of figures are being seen in the stock market. Also, what are the reasons due to which a decline is being seen in the stock market?
stock market crash
The stock market started on a positive note on Tuesday and also appeared at the day's peak at 10.30 am during the trading session. But in the next two hours, reverse gear was engaged and around 12.30 pm both Sensex and Nifty appeared at the lower level of the day. First of all, if we talk about Bombay Stock Exchange's main index Sensex, it opened with a slight decline of 77,094.79 points.
But after some time it started gaining momentum and reached the peak of the day at 77,493.53 points at 10.30 am. But after that the Sensex again put into reverse gear. If we look at the data, the Sensex appeared at the lower level of the day at 76,876.86 points around 12:30 pm. This means that the Sensex fell by 616.67 points from its day's peak.
On the other hand, Nifty, the main index of National Stock Exchange, also appeared to be making some kind of move. Nifty opened at 24,049.90 points and within a short time reached the day's high of 24,181.80 points. But later it also saw a decline and is visible at the lower level of 23,992.30 points. However, at 1:30 pm, Nifty is trading at 24,005.15 points with a fall of about 97 points. According to experts, there may be fluctuations in the stock market in the coming days.
Main reasons for market decline
- Profit Booking: Despite expectations of continuation of gains for the second consecutive session, profit booking was seen in both the indices. Financial, IT and realty stocks fell the most. On Monday, after last week's huge fall, both Sensex and Nifty broke the trend of three consecutive sessions due to the rise in information technology stocks.
- Increase in crude oil prices: Brent crude rose 0.99 percent to USD 109.3 per barrel. Rising oil prices increase the cost of imports for India, widen the trade deficit, and put upward pressure on inflation. Which has a direct impact on the market sentiment.
- Selling by foreign investors: Foreign institutional investors (FIIs) sold shares worth Rs 1,151.48 crore on Monday. Continuous selling by foreign investors reduces liquidity (cash flow) in the market and increases pressure on share prices.
- Weak Global Signals: Asian markets, including Japan's Nikkei 225, Shanghai's SSE Composite and Hong Kong's Hang Seng, were trading lower. Wall Street futures were also in the red, indicating a weak start for the US markets.
- Expiry Volatility: Being Nifty expiry day, the market witnessed a lot of volatility as traders were seen adjusting or rolling over their positions, leading to sharp price fluctuations during intra-day trading.
- Geopolitical tension: Uncertainty regarding global developments also affected the mood of investors. A US official indicated that President Donald Trump is unlikely to accept the latest proposal to end the conflict without halting Iran's nuclear program. Also, due to the cancellation of diplomatic talks, hopes for an early resolution of the conflict have also been dashed.
- Fall in banking stocks: After the final rules of asset classification and provisioning issued by the Reserve Bank of India (RBI), a decline of up to 2 percent was recorded in the banking index. These rules will be effective from April 1, 2027 and are expected to increase the provisioning requirements (amount set aside for risk) for public sector banks.
