Stock Market Fall Major Reasons: The stock market fell for the sixth consecutive day on Friday. American tariff shocks, H-1B visa pressure on the IT sector and the rate cut expectations of Federal Reserve were loudly selling in the market.
Sensex nifty crash top reasons: The day of Friday, 26 September was very challenging for the stock market. The BSE Sensex fell 733 points to 80,426 levels, while the NSE Nifty-50 closed at 24,655 with 236 points. This is a sixth consecutive decline session. During this time investors lost Rs 6.73 lakh crore. But the question is, why did the stock market look so weak today? Let’s know the 3 biggest reasons for this …
Impact of American tariff, earthquake in pharma sector
US President Donald Trump announced a new tariff on pharma products. America takes about one-third of India’s drug exports. Due to this new tariff, pharma stocks like Surya Pharma, Dr. Reddy’s Labs saw a decline from 2% to 5%. According to market experts, the stock market will be under pressure until there is a positive bilateral agreement between India and the US.
H-1B visa fees shock, IT sector weak
The US administration has recently reduced the H-1B visa fee to $ 1,000. This step was overshadowed by India’s IT Stocks. India takes about 70% of the H-1B visa. Shares of companies like TCS, Infosys, Tech Mahindra, HCL Technologies have been in decline for 6 consecutive days. This pressure in the IT sector is also affecting the total performance of the Nifty.
Expectation of FED rates reduced
The US GDP’s encouraging figures weakened the hopes of the Fed rate cut. The possibility of rate cuts in October and December is now 87% and 62% respectively, which was 91% and 76% earlier. Jerome Powell, chair of Fed, said that if the rates were reduced very quickly, the target of inflation could be incomplete. At the same time, keeping high rates for a long time can have negative effects on the labor market.
Disclaimer: This article is only for general information. The things given in it are not any kind of investment advice. Investment in the stock market is subject to risk. Before investment, consult your Financial Advisor.
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