Today, on May 12, a decline is being seen in the stock market. Sensex is trading at 75,000 level with a fall of 1,000 points. Nifty has also fallen by 300 points and reached the level of 23,500. This is the fourth consecutive trading day for the market when it has seen a decline. In these four days, the Sensex has fallen by 3,000 points, while the Nifty has fallen by 800 points. IT shares have seen the biggest decline in today’s trading session. Shares of TCS, Infosys, Tech Mahindra and HCL Tech have fallen by up to 4%. At the same time, realty, financial services, media and private banking sectors have seen a decline of more than 1%.
Main reasons for the decline in the stock market
**Crude oil prices rise:** Brent crude is trading at $105 per barrel, up 0.93%. India meets most of its oil needs through imports, so rising prices could further increase inflation.
**US-Iran Tension:** Investors are worried about the increasing tension between America and Iran. There is an atmosphere of uncertainty in global markets after Trump’s statements.
**Selling by foreign investors:** Foreign institutional investors (FIIs) sold shares worth ₹8,437.56 crore on Monday. This continuous selling pressure is becoming a big headache for the market.
**Weakness in global markets:** Asian markets – especially Korea’s KOSPI and China’s Shanghai Composite – are witnessing a huge decline. Additionally, there are signs that US markets are also off to a weak start.
**Rupee at record low:** The Indian Rupee has fallen to a historic low of 95.5 against the US dollar. The confidence of foreign investors has been shaken due to the weakening of the rupee.
**India VIX:** ‘India VIX’ – an index that measures market volatility and fear – rose 2% to 18.87. This increase indicates that there may be a lot of volatility in the market in the coming days. Fear of inflation: There is an atmosphere of panic in the market before the release of retail inflation data for April; These figures are expected to be released this evening. Investors fear that the impact of rising oil prices will be visible in inflation figures.
Heavy selling in IT sector: Nifty IT index fell by more than 3%. IT stocks – which have a high weightage in the index – were mainly responsible for the market decline.
Mixed trend in Asian markets
US markets rose yesterday
FIIs sold equity shares worth ₹18,724 crore in last 7 days
Note: Net buy/sell figures for FII and DII are shown in crores of rupees.
Sensex closed down 1,313 points on Monday
Earlier, on May 11 – i.e. Monday – a decline was seen in the stock market. Sensex fell 1,313 points to close at 76,015. Nifty also fell 360 points and closed at 23,815.