stock market
The Indian stock market opened with a big fall on Tuesday, the last trading day of 2024. BSE Sensex fell 404.34 points and opened at 77,843.80 points. At the same time, NSE is trading at 23,554.80 points with a fall of 89.60 points. There is a big fall in the market for the second day today. After a strong opening on Monday, selling dominated the market in the last trading hours. Today there was a rush as soon as the market opened. If we look at the index, there is a decline in all the major sectors including IT, Pharma, Auto. After all, what is the reason for the big fall in the market? Let us know.
What is the reason for the decline in the market?
Chaos in the American market: Today there is a big fall in the Indian market. Important budget: There is a big fall in the American market. There was a big decline in Dow Jones and Nasdaq on Monday. Its effect is visible in the Indian market today.
The selling by foreign investors has not stopped: The second important reason for the decline in the Indian market is the selling by foreign investors. Foreign investors are continuously withdrawing money from the Indian market. Due to this, the Indian market is continuously going down from record high.
Strengthening dollar: The third main reason for the decline in the Indian market is the continuous strengthening of the dollar. The Indian rupee is weakening against the dollar. The rupee has fallen to a historic low of 85 per dollar. Let us tell you that weak rupee discourages foreign investors from investing in the Indian market. This reduces their profits when they convert it back into their home currencies, causing foreign capital to flow out and putting further pressure on the markets. This is also affecting the Indian market.
No signs of improvement in the condition of companies: The first and second quarter results of Indian companies were not good. The financial results of the third quarter i.e. December are also not expected to be much better. Its effect is also visible on the Indian stock market.
Macroeconomic Headwinds: New concerns have emerged regarding India’s deteriorating macroeconomic picture, which has impacted market sentiment. The country’s trade deficit reached an all-time high in November. Apart from this, the economic growth rate has also slowed down. India’s second quarter GDP growth rate was the lowest in almost two years and the third consecutive quarter of decline in growth rate. Its effect is also visible on the Indian stock market.
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