last business of the week Indian stock markets closed with a big fall on Friday. BSE Sensex fell 732.96 points to close at 73,878.15. Similarly, NSE Nifty closed at 22,475.85 points with a weakness of 172.35 points. The stocks of Reliance Industries and Maruti have contributed the most in taking the market down. Both these stocks declined by more than 2 percent. Along with this, selling was seen in all the heavyweight shares. Let us know the 5 reasons due to which selling was seen in the market today.
1) Decline in RIL, Maruti and HDFC
RIL, Maruti and HDFC Bank contributed in bringing down the Indian market. There was a big fall in the Indian market due to selling in these heavyweight shares.
2) Rise in India VIX
India VIX, which reflects volatility, has surged over 12% to 15.12 as changing factors impact market sentiments including Q4 earnings, ongoing election season and timing of interest rate cuts by the US Fed. Is. This also led to a decline in the market.
3) Fear of inflation
Inflation concerns have increased in the US as inflation remained above market expectations for four consecutive months. In the May policy, the US Fed acknowledged limited progress towards its inflation target and highlighted that uncertainty remains about inflation. Its effect was also visible on the market.
4) Hopes of interest rate reduction bleak
Inflation in America is still higher than the target. As a result, investors are now beginning to doubt whether the Fed will cut rates in calendar year 2024, given recent disappointing progress in reducing inflation.
5) Fear of Lok Sabha elections
Market fluctuations are also increasing wildly due to market speculations regarding the results of the Lok Sabha elections. Analysts believe that as we get closer to the June 4 election results date, volatility may increase further.
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