Why is stock market falling:The stock markets are facing a continuous decline in recent times. Today i.e. on Monday, a big fall is being seen in Sensex and Nifty. Nifty 50 declined by 1.1%, that is, it fell by more than 250 points and reached 23,172.70. At the same time, BSE Sensex fell 840 points or 1% to 76,535.24. The leading market index, Nifty Mifty Midcap 100, declined 1.8%, and was trading at around 56,603. Let us know what could be the reasons behind this decline in the stock market.
What is the reason for today’s decline in the market?
weak global market
Asian markets were trading at lower levels on Monday, as American markets had fallen on Friday. The US Jobs Report had reduced expectations of an early interest rate cut from the US Central Bank Federal Reserve. South Korean KospiIt was trading at Rs 2,485, down 1.21%. Asia Dow It was down 1.15% at 3,676.11. from hong kong Hang Seng It was down 1.14% at 18,847. On Friday, the S&P 500 closed 1.54% lower at 5,827. Nasdaq Composite Falling 1.63% to close at 19,161.63. The 30-stock Dow Jones Industrial Average (Dow Jones Industrial Average) fell 696.75 points or 1.63% to 41,938.45.
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Increase in crude oil prices
WTI crude oil prices were up 1.83% at $77.97 and Brent crude oil prices were up 1.74% at $81.15. Prashant Tapsey, Senior Vice President, Mehta Equities, said – Oil prices have seen a 3-month high, which is due to the sanctions imposed by the US on Russia’s oil exports. Mihika Sharma, Associate Economist at CareEdge Ratings, believes that the rise in oil prices is due to rising energy demand due to cold weather and expectations of policy support from China.
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Ongoing selling by foreign investors
Foreign institutional investors (FIIs) continued selling in Indian stock markets, weakening investor morale. So far, they have made sales of Rs 21,357.46 crore in January. In the last three months, FIIs have made net sales of Rs 1,77,402.49 crore. According to experts, the main reason for the continued selling by FIIs is the continuous rise in the dollar index, which is now above 109.
The fall in Asian and American markets, rise in crude oil prices, and continuous selling by FIIs have affected the morale of investors.
