Stock market continues to fall
On Tuesday, the stock market is seen to be a hesitant account for the fourth consecutive day. As soon as the stock market opened on Tuesday morning, the Sensex came down around 300 points. The special thing is that if the decline of about 300 points on the last three business days and Monday is added, then the Sensex has seen a decline of more than 2100 points. On the other hand, there has been a big decline in the Nifty. Now the biggest question is, how long can this decline be seen in the stock market? How long can you be seen returning out in the stock market?
All these questions are also standing because the main reasons for the decline in the stock market are still alive. The delay in trade deal with the US is the major reason for the decline in the market. It is being given in this deal due to lack of consent in agriculture. Because of which it is not possible to get this deal before August 1. On the other hand, the decline in rupee is also an important reason. Foreign investors are constantly withdrawing their money from the stock market.
The first quarter corporate earnings are being seen very poorly. On the other hand, in America, in America, India’s IT professionals not announced jobs, Pharma Paran is a 50 percent tariff, which is leading the stock market towards a decline. Let us try to understand these reasons in detail and try to understand when the stock market can be seen again.
US trade deal delayed
The deadline of the trade deal by US President Donald Trump is August 1. On the other hand, the deal within this deadline between India and America does not seem to be possible. Due to which investors’ sentiments in the stock market have become very weak. Also, in the coming days, delay in the trade deal has increased many fears in the minds of investors regarding the potential Jio Political Tension and Economic Results. This is the reason why the stock market is facing a steady decline.
Exotic investors withdrawn
According to temporary data, foreign portfolio investors (FPIs) sold Rs 6,081 crore ($ 700.92 million) from the stock market on Monday. His biggest one day was the biggest selling of one day since May 30. The special thing is that in the month of July, foreign investors have withdrawn Rs 7923 crore from the stock market. This sharp withdrawal of foreign investors has raised concerns about market volatility in the near future.
Rupee falls against dollar
On the other hand, there has been a big fall in the rupee against the dollar. On Tuesday, the rupee has broken 18 paise to 86.88 levels in the dollar. According to foreign currency traders, the rupee is facing a decline due to increasing demand of dollars. In the month of July itself, the rupee has seen a decline of about 1.50 percent. Due to which there is a lot of pressure in the stock market as well.
Reduction in corporate earnings
On the other hand, the data of corporate earning of the first quarter is coming out. Which is not as encouraging, which was expected. Big companies have seen a decline in earnings. Recently, the quarterly results of Kotak Bank were revealed. In which the profit has seen a decline of 47 percent in the first quarter. On the other hand, the quarterly results of IT companies have also not been seen very encouraging. Due to which there is pressure in the stock market.
other reason
There are other reasons for the decline in the stock market. Recently, Trump has asked the US IT companies not to give jobs to India’s IT professionals. Due to which there is a lot of pressure in the shares of IT companies. On the other hand, the US has imposed a 50 percent tariff on the pharma sector. The effect of which is also being seen. Apart from this, Trump’s ultimatum to end the 12 -day war for Russia is also putting a lot of pressure.
Will the stock market rise up?
Or wealth global research director Anuj Gupta said that the real reason for the decline in the stock market is not to trade on time. Apart from Europe, the US has made trade deals in Japan and South Korea. Now he is also preparing to deal with China. On the other hand, India was among the countries in the world with America in the world. Even after that, the trade final with India has not been done. In such a situation, until America’s trade deal is done with India, the mood of the stock market can remain fluctuating.