The Indian stock market has fallen once again. The Sensex and Nifty have been declining steadily since morning. On Tuesday, December 16, pressure was visible in the market right from the early morning trade. At 10:57 AM on this day, the Nifty fell by 124 points to stand around 25,903 points. Meanwhile, at the same time, the Sensex dropped by 442 points to stand at around 84,772 points. Bank Nifty also took a major hit, with the index falling by 342 points. This means on Tuesday, the Nifty once again fell below 26,000, and the Sensex dropped below 85,000.
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Pressure was also seen in the midcap and smallcap segments on this day. Midcap Nifty fell by nearly 1 per cent. Media reports indicate that in just the first half hour of the trading session, investors lost at least 2 lakh crore rupees from the market. At 9:45 AM on Tuesday, the total market capitalisation on BSE was 469 lakh crore rupees, which was 471 lakh crore rupees in the previous session.
Why is the Indian stock market falling?
Experts believe multiple factors are working together behind the turmoil in the Indian stock market.
FII exodus:
This year has seen foreign investment leaving the Indian market. FIIs have been exiting since July. In December alone, foreign investment worth 21,000 crore rupees has already left the Indian stock market. Calculating from July, the figure would stand at 1.70 lakh crore rupees.
Global market shock:
Major shocks have been seen in Asian markets. Japan's Nikkei, Korea's Kospi, and Hong Kong's Hang Seng have each fallen by about 2 per cent. Earlier, the Nasdaq in America fell by about 0.61 per cent. Following the decline in tech company stock prices in America, falls have been seen in other sectors as well. Experts believe investors are taking cautious steps due to Job Data and the policy-making dynamics of the Bank of England and Bank of Japan.
Major fall in Indian currency value against the dollar:
There has been a record fall in the Indian currency against the dollar. Now, 1 dollar is worth approximately 91 rupees in Indian currency. Experts believe the Indian currency is being hit due to trade deficit and foreign investment exodus. This year has seen a massive decline in India's currency value for this reason. This has also impacted the stock market.
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Support and resistance:
In a media report, Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that there is resistance for Nifty at the 26,060 level. It has been repeatedly seen that the index cannot cross this level. If it crosses this level, then Nifty will reach new heights. According to him, traders should consider 25,900 and 25,800 as key support zones. If the market trades above this level, it can be assumed that positive sentiment exists.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
