Why is there a ruckus in the stock market today?
Sensex-Nifty Down: The Indian stock market had a sluggish start on the first day of the week. But the negative news from the country’s largest company Reliance Industries worked to increase the pressure on the market. Reliance’s stock fell more than 4 percent in the day’s trading. Experts say that the Reliance-Aramco deal has been canceled. The effect of this news is on the stock of Reliance.
At the same time, the news of increasing interest rates in the coming days has increased the concerns of investors. However, domestic investors need not panic. Because crude oil is getting cheaper. In such a situation, the economy and companies will get support from this.
Major reasons for the fall in the stock market
Worry about rising interest ratesAsif Iqbal, Research Head, Escort Security told TV9 Hindi that the biggest concern of the stock market at this time is the increasing interest rates. Because a decision can be taken on this soon in America. In such a situation, investing money in India will not be more beneficial for foreign investors.
The impact of the fall in Reliance’s stock- A big news came on Friday. Reliance Industries and Saudi Aramco have decided to cancel their deal and re-evaluate it.
Aramco was to buy a 20 percent stake in Reliance’s Oil to Chemical (O2C) business, but both have canceled the deal in the changing environment.
That is why the stock of Reliance continues to decline since Monday morning. The brokerage house has reduced the target of the stock to 10 per cent.
Now what will happen next?
Vivek Mittal, Research Head, VM Portfolio, told TV9 Hindi that the decline in the stock market may continue for the next few days. But this should not scare investors. But this is a good opportunity. Because crude is falling. This will have a direct impact on the earnings of the companies. The cost of companies will decrease and profits will increase.
The US Dollar Index gained strength. Now experts say that this is a matter of concern for emerging markets like India as the strengthening of the dollar can affect the flow of FIIs.
Foreign institutional investors are in continuous sell-off mode. For the week ended November 18, FIIs have sold Rs 4,410.9 crore while DIIs have bought Rs 3926.53 crore. In the month of November, FIIs have so far sold Rs 10,000 crore, while DIIs have bought almost the same amount.
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