The combined market cap of all the stocks listed on BSE has come down to Rs 258 lakh crore today. IT, metal and media sectoral indices fell between 2-4 per cent.
share market continues to decline. Sensex and Nifty have seen a decline for the 7th consecutive trading day. During this, 9.25 lakh crore rupees of investors were drowned. if matter Sensex Talking about it, including a fall of 176 points on Monday, it has come down by 2,031 points in 7 trading days. Niftyalso witnessed 7 days of non-stop selling, due to which it went down even below the budget day low of 17,353.40.
The combined market cap of all the stocks listed on BSE has come down to Rs 258 lakh crore today. IT, metal and media sectoral indices fell between 2-4 per cent. However, realty stocks turned bullish with Nifty Realty gaining over 2 per cent in Macrotech Developers. Let us also tell you that due to which 10 reasons the stock market is seeing a decline.
Loss to the stock market due to these 10 reasons
- Global Market: The impact of the global market on the Indian market is clearly visible. Last week, the Dow Jones fell 3 percent in its fourth straight weekly decline. Asian markets were under pressure this morning, with the Nikkei down 0.11 per cent, the Hang Seng down 0.33 per cent and Australia’s S&P/ASX 200 down 1.12 per cent.
- Fed’s fear: On the back of a fresh rise in inflation in the US, market watchers are now fearing that the Federal Reserve may hike interest rates in the next three meetings. Edward Moya of OANDA said that the Fed may increase by 0.50 basis points in the coming meetings.
- US Data : The Fed’s favorite inflation gauge, the PCE price index, rose 0.6 percent in January after rising 0.2 percent in December. The January personal expenditure data also rebounded strongly from a revised -0.1 per cent to +1.8 per cent. US Treasury Secretary Janet Yellen said new data showing an unexpected jump in inflation in January indicated the fight against inflation is “not a straight line” and more work is needed.
- FII sale : Foreign institutional investors have dumped Indian equities worth over Rs 31,000 crore so far in calendar year 2023. F&O data showed that net shorting of FIIs in index futures again crossed 1 lakh contracts. Rising rates in the US could lead to more capital outflows from emerging markets. South Korea and Taiwan have seen good capital inflows in this month.
- Third Quarter Results: The December quarter earnings season failed to provide any positive trigger to support the valuations. Sharekhan said in a media report that 50 per cent of the Nifty 50 companies beat PAT estimates, while 40 per cent missed the estimates. “Margin pressure continued for sectors such as cement, metal, healthcare, and oil and gas. EBITDA margin of Nifty 50 companies, excluding BFSI, declined by 184 bps as gross margin declined amid higher input cost.
- Continuous decline in Adani stock: The continuous selling pressure in Adani’s shares is also weighing heavily on the equity market. During the day, 9 out of 10 Adani stocks were trading in the red zone, with Adani Enterprises falling the most at 9 per cent. Six other shares of the group closed at the lower circuit of 5 per cent. In the wake of the allegations made in the Hindenburg Report, the combined market capitalization of Adani’s shares has now fallen below Rs 7 lakh crore.
- Rise in Dollar Index: The US dollar index, which measures the greenback against six major peers, is trading above the 105 mark. The index is up 3 per cent for February and looks set to break a four-month losing streak as investors keep their expectations for longer US interest rates.
- Bond Yield : The two-year US Treasury yield, which usually moves in tandem with interest rate expectations, rose 3.4 basis points to 4.839 per cent, slightly below Friday’s three-month high of 4.840 per cent.
- Technical Factors: Nifty today broke its 200-day SMA support to reach 17,368. On the upside, analysts said, 17552-17620 could offer resistance. Ajit Mishra, VP said, “Most sectors are braving the heat, but the continued poor performance of banking and financials will remain a major concern. Hence, we recommend to continue with “Sell on Rise” approach till Nifty shows some signs of reversal.
- al Nino : According to experts, the prediction of a heat wave in March ahead of the rabi harvest and the initial forecast of a below normal monsoon this year due to El Nino are raising concerns about a decline in food inflation and rural income.
Source: www.tv9hindi.com
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