look news india
The Indian stock market opened with a bang on the first day of trading today i.e. on 4th November i.e. Monday and the decline in the stock market continues. After Diwali, there was a huge fall of more than 1300 points in the open market Sensex. While Nifty broke above 450.
A period of all-round selling is being seen in the Indian stock market. By 12 noon, the Sensex had fallen 1,427.09 points to 78,297.02. At present Nifty is trading at 23,843.90 points with a big fall of 460.45 points. Due to this huge fall in the market, investors have suffered a loss of about Rs 5 lakh crore so far. Even in the month of October, investors suffered a loss of about Rs 30 lakh crore. So what is the reason for this decline?
Sensex and Nifty 50 fall
1- Uncertainty has arisen between Kamala Harris and Donald Trump in the upcoming US presidential election. The election results may impact US Federal Reserve policies and subsequently Indian interest rates. The results of the US presidential election are due on November 6. Globally, markets will remain focused on the US presidential election over the next few days and may see near-term volatility in reaction to the election results. In such a situation, a big decline is being seen in the market today.
2- The Federal Reserve in America has a monetary policy meeting on November 7. The meeting has increased uncertainty in the market, as fears of a possible cut in interest rates may affect investor behavior. Its effect is visible in the Indian market today.
Weak results of companies which were less than expected in the second quarter also helped in pulling the market down.
3- Foreign investors have sold heavily in the Indian market for the last one month. Its effect is clearly visible on the stock. There has been a huge decline in Indian markets. On the other hand, foreign investors are withdrawing money from here and investing in the Chinese market, due to which the stock market there has increased.
4- Crude oil prices rose more than $1 on Monday after OPEC+ postponed a production increase in December. Brent futures rose $1.18 to $74.28 a barrel, while WTI crude rose $1.20 to $70.69. OPEC+ postponed its planned 180,000 bpd increase due to weak demand and increased non-OPEC+ supply. Its effect was also seen on the Indian market today.
Due to all this there has been selling in Indian shares. Due to this the market has collapsed. Now the big question is what will happen next, Nifty currently has a strong support level at 23,500. If the market breaks till 23,500 once, then recovery can be seen from there. It would be good to see the market investors in favor right now. Now is not the right time to invest or do business.