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New Delhi, 25 October (Hindustan Reporter). The domestic stock market once again fell victim to a big fall today. In today's trading, while the Sensex fell by 1,115 points from the upper level intra-day, the Nifty also dived by 366 points from the upper level. Investors faced a loss of Rs 6.36 lakh crore in today's trading.
Experts believe that today the selling by foreign investors, weak quarterly results of companies, increased pressure on the FMCG sector and uncertainty regarding the US presidential election played a big role in the collapse of the stock market.
According to Ramesh Gautam, CEO of Alaknanda Financial Services, foreign institutional investors (FIIs) have been selling indiscriminately since the last trading day of September i.e. September 30. Market sentiment is continuously deteriorating due to all-round selling by foreign investors. From September 30 till today, foreign investors have mainly played the role of sellers every day. So far this month, foreign institutional investors have sold more than Rs 1 lakh crore. For the first time in the history of the domestic stock market, foreign institutional investors have sold so much in a single month. Due to this selling, investors are scared of the possibility of further decline in the short term.
Ramesh Gautam mainly considers two reasons behind the selling by foreign investors. One of these reasons is the ongoing tension in the Middle East. At the global level, it is believed that this tension may increase further in the coming days. In particular, Israel can retaliate at any time to avenge a missile attack by Iran. If this happens, the tension in the Middle East will increase further, which may lead to a global crisis. This is why foreign investors are selling in stock markets around the world to secure their money.
According to Ramesh Gautam, along with the tension in the Middle East, one of the reasons is the announcement of relief package by the Chinese government in recent times. After China's relief package, there has been a strong rise in the stock market there, due to which many foreign investors are withdrawing their money from the stock markets of other countries of the world and investing it in China's stock market. The tension in the Middle East and China's economic recovery are both reasons whose impact can last for a long time. In such a situation, foreign investors can maintain their selling role in the Indian stock market in the coming days also, due to which there will be continuous pressure on the stock market.
Similarly, Ramdas Agarwal, partner of Agarwal & Agarwal Securities Services, says that due to the weak quarterly results of companies in India, the enthusiasm of investors in the stock market has fallen. Today the quarterly results of IndusInd Bank completely spoiled the mood of the market. Shares of this bank fell by 18.63 percent today, due to which the name of IndusInd Bank was also removed from the list of top 10 market value companies of the country. Due to the poor results of IndusInd Bank, there was a rush in the market to sell its shares, due to which the market sentiment was negatively affected.
According to Ramdas Aggarwal, generally when there is turmoil in the stock market, the demand for FMCG sector shares increases, because these are generally considered safe sectors for investment. But in the month of October, the FMCG sector also seems to be under continuous pressure. This sector is facing rising input costs, due to which their profit margins have been affected. There is also a negative atmosphere in the domestic stock market due to the FMCG sector coming under pressure.
Dhami Securities Vice President Prashant Dhami also considers the election of the US President as a major reason for the decline in the stock market. Dhami says that there is still uncertainty regarding the presidential elections in America. Pre-election trends are predicting a tough fight between Donald Trump and Kamala Harris. It is believed that this time there may be unexpected results of the elections in America, due to which there may be a situation of strong fluctuations in the stock markets around the world including the American market. If this happens, the domestic stock market will also be affected. That is why investors in the domestic market have already started doing business cautiously.
Prashant Dhami also says that this week the US treasury yield has also increased, which is considered a negative sign for Asian markets. Due to these reasons also, there was an atmosphere of disappointment in the domestic stock market today. Although investors' losses were reduced to some extent due to buying in the last hours of trading, there is a possibility of continued pressure on the market in the coming days.