The stock market, which was expected to rise at the beginning of the new year, has now become a headache for investors. In the last six trading days, there has been such tremendous selling on Dalal Street that investors’ wealth has been reduced by about ₹17 lakh crore. Both the major indices, Sensex and Nifty, are continuously falling, creating an atmosphere of fear and uncertainty in the market.
On Monday also the market opened with a weak start. In early trade, BSE Sensex fell more than 500 points to a low of 83,043, while Nifty fell more than 140 points below 25,550. While the Sensex had closed at 85,762 on January 2, it has now fallen by more than 2700 points. During this period, Nifty has fallen by about 3 percent. As a result, the total market capitalization of companies listed on BSE has declined to ₹464.39 lakh crore.
What are the main reasons behind this decline?
1. Growing uncertainty regarding US-India trade deal
The biggest concern for the stock market is related to the US. The situation regarding US President Donald Trump’s tariff policy and India-US trade deal is still not clear. The expected decision from the US Supreme Court on tariffs has not come, which has further increased the concerns of investors. Experts say that this uncertainty has weakened the direction of the market.
2. Continuous selling by foreign investors
Foreign institutional investors (FIIs) are continuously withdrawing money from the Indian stock market. Last Friday alone, foreign investors sold shares worth about ₹3769 crore. This selling has been going on for six days, putting huge pressure on the market and weakening liquidity.
3. Weak global signals and geopolitical tensions
There are no positive signals from global markets either. Questions over the independence of the Federal Reserve in the US, rising geopolitical tensions in Europe and the Middle East, and volatility in US bond yields have reduced risk appetite. This has had a direct impact on the Indian market.
