Indian stock markets started the day of the week with a fall. The Bombay Stock Exchange (BSE) benchmark index Sensex-30 (Sensex-30) fell more than 1,200 points to a low of 57,424 in intraday on Monday. On the other hand, Nifty was struggling to sustain the level of 17,150 amid selling pressure in heavyweights like Bajaj Finance, Bajaj Finserv, HDFC and HDFC Bank. Investors lost around Rs 3 lakh crore on Monday due to a sharp fall in the BSE Sensex.
Meanwhile, the bond market and foreign currency market remained closed today. In fact, to condole the death of legendary singer Lata Mangeshkar, the Maharashtra government had declared a public holiday on Monday, after which the RBI announced the closure of the government bond market and foreign currency market on Monday.
The biggest fall in the Sensex shares was seen in HDFC Bank, up 3.63 per cent. Apart from this, preferred stocks of foreign investors like HDFC, Bajaj Finserv and Bajaj Finance were also trading lower by 2.5% to 3.5%. Let us know what were the reasons behind today’s decline in the stock market-
Heavy selling by FII
Santosh Meena, Research Head, Swastika Investmart Ltd said, “The Indian market is witnessing a sharp decline during trading today. The main reason behind this decline is selling by foreign institutional investors (FIIs), which is increasing the price of crude oil. and US are pulling money out of the Indian market on fears of a rise in bond yields. All the stocks that fell today have been favorite stocks of FIIs, including heavyweights like HDFC, HDFC Bank, ICICI Bank, Infosys and Kotak Bank. These stocks as well as the benchmark index have come down due to the sell-off of FII. At the end of today’s trading, we are expecting bigger sell-off figures from FII side. However, during this period PSU Banks, Metals There was good buying in shares and sugar stocks.
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Impact of assembly elections?
Santosh Meena said, “If we talk about domestic cues, the budget was good and the earnings growth of the companies in the December quarter has also been decent. Panicking right before?” Technically, Nifty has slipped below its 50 day moving average which is not a good sign. However 17,200 is a support level where we can expect some recovery. If it doesn’t So selling pressure may extend towards 17,000/16,800 levels. However, if support is found, 17450-17500 will now act as a strong resistance.”
US interest rates likely to rise
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The US government 10-year bond yield has risen to 1.91 per cent, reflecting rising inflation concerns and mounting pressure on the Federal Reserve. 4.67 lakh new jobs were created in the US in January, which exceeded market expectations. There is no doubt that the Federal Reserve will now take tough measures to contain inflation. If the Federal Reserve raises interest rates by 0.50 in March. If the percentage increases, then there may be a sharp decline in the markets around the world.”
VK Vijayakumar said, “The sale of FII is definitely affecting the market in the short-term, but not in the medium-term. FII has sold equities worth Rs 1,14,100 crore since October 2021 till date. But still Nifty remains at the same level as it was in early October 2021. FII selloff is causing the downside in the short term, but not having any significant impact in the medium term.”
effect of foreign stock exchanges
European stock markets were mixed today. However, in other Asian markets, Hong Kong, Tokyo and Seoul were trading in losses during the mid-session. The US stock markets also closed with a mixed trend on Friday.
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