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The Indian stock market had a very dull and disappointing start today due to very weak signals from global markets and continued heavy selling by foreign institutional investors (FIIs). On the fourth trading day of the week, there was a severe bearish atmosphere on Dalal Street since morning, due to which major benchmark indices were seen trading in the red. Breaking the levels considered diplomatically important, the 30-share sensitive index Sensex of Bombay Stock Exchange (BSE) fell by more than 170 points, while the Nifty of the National Stock Exchange (NSE) also slipped below the psychological level of 23,400, increasing the heartbeats of investors.

Both the indices got battered due to selling pressure in early trade itself.

As soon as the market opened, such a period of all-round selling (profit booking) started that buyers were completely on the back foot. While the Sensex was seen struggling around 74,150 with a fall of more than 170 points immediately after the opening, the Nifty 50 index also stood near the level of 23,350 with a weakness of about 60 points. The biggest blow to the credibility and sentiment of the market has been caused by the huge fall in the shares of IT and metal sectors, due to which investors lost crores of rupees in the first few minutes.

There was maximum panic in the shares of IT and metal companies.

In today’s business, the shares of big IT companies have been hit the most. After the huge fall in the previous sessions, even today the shares of big tech companies like Infosys, TCS, Wipro and Tech Mahindra were seen crawling in the red. Apart from this, due to diplomatic fluctuations in global commodity prices and weak demand from China, heavy profit booking is also being seen in shares of metal companies like Tata Steel and JSW Steel. The recession in these two big sectors has spoiled the mood of the entire market.

Why is the market suddenly in the red? Know 3 big reasons

According to market experts and veteran diplomatic analysts, there are three biggest reasons behind this latest decline. The first reason is the very weak signals received from the American markets, which has completely devastated the Asian markets. The second main reason is the continuous withdrawal of funds from the Indian market by foreign portfolio investors (FPI/FII), which is affecting liquidity. At the same time, the third biggest reason is the huge uncertainty among investors regarding the monetary policy decision of RBI (RBI MPC Meeting) and interest rates coming on Friday, due to which traders are avoiding taking any big risk.

What strategy should retail investors adopt next amid ups and downs?

Amidst this fierce ups and downs in the stock market, retail i.e. small investors are being advised to be extremely cautious. Technical analysts believe that the zone of 23,150 to 23,200 will act as a very strong and last defense line (support) for Nifty. As long as the market maintains this level, there is nothing to worry about. At such a time, avoid any kind of rumors or panic selling (selling shares out of fear) and make strategic investments only in those companies whose quarterly earnings have been excellent and whose fundamentals are very strong.