On Tuesday, the major indices of the Indian stock market, Sensex and Nifty, opened with a fall of about 1%. The market environment weakened after three days of rally due to rising crude oil prices and continuous selling by foreign investors. In early trade, the Sensex fell 1.05% to 73,326.61, while the Nifty fell 0.9% to 22,771.75. Along with big stocks, midcap and smallcap indices also fell by about 1%, which showed pressure in the market. During this period, the total value of BSE listed companies decreased by Rs 4.24 lakh crore in a few seconds. Investors suffered a loss of about Rs 4 lakh crore.
The biggest losses in the initial fall of the stock market were IndiGo, Zomato’s parent company Eternal, Mahindra & Mahindra (M&M), State Bank of India (SBI), Axis Bank and Asian Paints, which fell by about 2-3%. Contrary to this trend, shares of Bajaj Finance, TechMahindra, HCL Tech and ITC were trading in the green, but they had very slight gains.
Nifty Auto suffered the biggest loss among the sectoral indices on NSE. It fell more than 2% in early trading hours, while the Nifty PSU Bank index declined 1.9%. Meanwhile, Nifty Metal gained 0.7%, while India Vix jumped 2%. About 1,105 shares declined on NSE, while 1,398 shares gained and there was no change in 82 shares. Let us know why the stock market fell today.
Decline due to these reasons
- Trump’s new threats on Iran- US President Donald Trump has intensified his threats against Iran. He said that if Iran does not listen to him, huge damage can be caused to the country in a single night. Trump also said that Iran’s power plants and bridges could be destroyed within a few hours. Iran has rejected these things. Meanwhile, the series of attacks between Israel and Iran continues and the situation does not seem to be returning to normal. However, there was a rise in the market yesterday because of the news that a plan of agreement can be made between Iran and America, due to which the Strait of Hormuz can be reopened and trade can start.
- Oil prices again above $110/barrel- Oil prices have again reached above $110 per barrel. The reason for this is the tension related to Iran and the possibility of blockage in the Strait of Hormuz, due to which the oil supply may be affected. According to Tuesday morning data, Brent crude was trading at around $111 per barrel and WTI crude at around $115 per barrel. Oil prices have been rising since the start of the war and crossed $100 in March.
- Increase in bond yield- The return (yield) on America’s government bonds (debt) has increased slightly. When bond yields rise, it means that investors are taking money out of the stock market and investing it in other safe places. This increases pressure on the stock market.
- FII selling continues- Foreign investors are continuously selling in the Indian stock market. According to NSE data, they have been selling shares for 24 consecutive days. On Monday he sold shares worth about Rs 8,167 crore. Due to this, the market environment remains weak, even though domestic investors are buying.
- Profit Booking- One reason for today’s fall is that investors have started withdrawing the profits made in the last three days. In the last three days, Sensex and Nifty had increased by about 3%. In such a situation, some investors saw the right time and sold their shares, due to which the market came down.