Stock Market News Today: A decline was recorded in the stock market on Tuesday, where the Sensex fell by more than 500 points and the Nifty slipped below 26 thousand. After profit booking, the market appeared under pressure and fell sharply. Know the 5 biggest reasons…
Share Market Down Reasons: After the rise in the stock market on Tuesday, October 28, investors started booking profits. After the rise on Monday, a decline was seen in the market today. By 2.30 pm, Sensex was trading 506 points down at 84,272.83 and Nifty was down 138.90 points at 25,827.15. After a slight recovery at 3 pm, Sensex was trading at 84,512.32 and Nifty at 25,914.50. During this period, market breadth also remained weak, 1,588 shares rose while 2,155 shares declined, while 149 shares remained unchanged. Know who were the top losers and gainers today and the 5 biggest reasons for the market decline?
Top gainers-losers stocks today
Tata Steel, Hindalco Industries and Eicher Motors were among the top gainers in today’s session. At the same time, big stocks like Bajaj Finserv and ICICI Bank registered a decline of up to 2%. This is an indication for investors that the metal and auto sectors are currently showing strength, while there is some weakness in the banking and financial sectors.
5 biggest reasons for stock market decline
profit taking phase
After the rally of the last few sessions, investors have now started profit booking. A slight decline was seen in banking, financial, realty, FMCG and IT sectors. According to market experts, Nifty is close to its all-time high, so investors are exercising some caution and booking profits.
Selling by foreign investors
On Monday, foreign institutional investors (FIIs) sold shares worth ₹55.58 crore. Continuous selling by foreign investors is putting pressure on the sentiment of the domestic stock market. Generally when FIIs sell, market volatility and short-term decline increases.
Increased volatility in the market
Today India VIX (Volatility Index) rose by 5% to 12.50, which shows that traders have become alert. When the VIX increases, it means that market volatility is increasing and the risk in short-term trades is higher.
Rupee weakness and oil prices
The Indian rupee today fell by 21 paise and reached Rs 88.40 against the dollar. This decline was due to the strengthening of the dollar, rising crude oil prices and dollar demand from importers. Investors are now awaiting the policy meeting of the US Federal Reserve, in which an interest rate cut of 25 basis points is expected.
Monthly expiry of Nifty derivatives contracts
Today was the monthly expiry of Nifty futures and option contracts, due to which the volatility in the market increased. During such sessions, traders adjust their positions, leading to an increase in both volume and volatility.
Disclaimer: The information given in this article has been prepared for general information purposes. Do not take any information given here as investment advice. Investing in the stock market is subject to market risks. Before taking any investment decision, definitely consult your financial advisor.
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