The Indian stock markets continued to decline for the fifth consecutive day on 25 September. Both Sensex and Nifty were trading in red mark. Concerns about frequent selling of foreign investors and American visa policies have reduced the enthusiasm of investors. Around 11:50 am, the Sensex fell 222.74 points or 0.27% to 81,492.89. The Nifty fell 66.30 points or 0.26% to 24,990.60. During trading, the Sensex fell 300 points below the highest level of its day. Major shares like Tata Motors, Trent, Asian Paints, Dr. Reddy’s and Titan declined by 3%.
There were four major reasons behind today’s decline in the stock market:
1) Constant selling by foreign institutional investors (FIIs)
There is a major concern for the stock market selling by foreign institutional investors (FIIs). Foreign investors sold shares worth ₹ 2,425.75 crore on Wednesday. Earlier, he sold shares worth ₹ 3,551.19 crore on Tuesday. VK Vijaykumar, the main investment strategist at Geological Financial Services, said, “This year the biggest challenge for the stock market has been continuously selling by foreign investors. However, the economic reforms and deduction in interest rates in India have raised hopes of corporate income improvement. This may make the Indian market return to the Indian market in future.
2) concerns about US visa fee
Today, during trading, the Nifty IT index declined by 0.2%. Since September 19, the index has fallen by about 5.13%. The US has increased the fee for new H-1B visa applications from 22 September to $ 100,000 (about ₹ 88 lakh). This decision has put pressure on IT shares. Prashant Tapse, Senior Vice President (Research), Mehta Equities Limited, said, “Trump’s heavy tariffs and new visa fees have affected investors’ notion. Nifty is facing strict resistance at a level of 25,300.”
3) Weak global signs
Weak global signals also reduced investors’ confidence. Most of the major Asian Index, including South Korea’s Kospi Index, were trading with a decline in morning trading. The US stock market also closed down on Wednesday.
4) High crude oil prices
On Wednesday, crude oil prices rose 2.5% to reach their highest level since August 1. The bounce occurred due to unexpected fall and supply concerns in American reserves following Ukraine attacks on Russian energy infrastructure. Although prices fell slightly today, they remain high.
What are the technical charts indicating?
Anand James, the main market strategist of Geojit Financial Services, said, “There is currently a level support of 25,000 for Nifty, but a level of 25,278-25,330 can work as strong resistance to the top. If this level is not crossed, the stock market may move towards 24,880-24,800.”