look news india
Stock Market Fall: The month of October has actually been inauspicious for the stock market. The bearish momentum has increased amid heavy volatility in the last month. This week alone, Rs 21.47 lakh crore has been withdrawn from investors. Sensex and Nifty were trading with a decline of more than 1 percent today. Market experts are concluding that these five reasons are responsible for such a huge fall in the stock market.
Factors responsible for big fall in stock market
1. FII sales
Global uncertainties and low prices in China led to heavy selling by foreign investors in the Indian stock market. So far in October, foreign investors have invested Rs. Have invested. Sales of Rs 97205.42 crore have been recorded. The release of relief package by China has attracted foreign investors to invest in Chinese markets instead of India. Because, the volume in the Indian stock market is very high, whereas in China there is an opportunity to buy at a lower price.
poor quarterly results
In the second quarter of the current financial year, the results of IT, realty and auto companies were overall weaker than expected. Apart from this, many other companies have declared disappointing results and its effect has been seen on the stock market.
3. US elections 2024
Presidential elections are to be held in America in November. In which a heated clash was seen between Kamala Harris and Donald Trump. Kamala Harris has been seen winning in many opinion polls and Trump has been seen winning in some opinion polls. Amidst speculations about Fed cutting interest rates, investors are adopting a wait and see policy.
4. geopolitical crisis
There is a fierce war going on between Iran and Israel, Israel and Hamas. There are reports that US and Israeli forces will soon discuss the Gaza ceasefire agreement. The geopolitical crisis at the global level has affected the stock market.
5. excessive profit booking
Domestically, the Indian stock market has been rising continuously for the last nine months. Volumes are too high. As a result, investors are booking profits by entering sales. On Diwali, some investors have also been seen preparing to buy new goods after emptying their old goods. According to market rules, there is a need for a major correction in the Indian stock market amid the rally of the last few months.
