Lok Sabha Elections The conflict is in full swing. Three phase elections have been held. Preparations for the fourth phase are in full swing. There is a tough contest in the elections between the ruling party ‘NDA’ and ‘India’ alliance. It is difficult to predict who will have the upper hand in the elections. Its effect is visible on the Indian stock market. There is continuous selling in the market. The market continued to fall for the third consecutive day on Thursday. BSE Sensex fell 1,062.22 points to close at 72,404.17. Similarly, NSE Nifty fell by 335.40 points and reached 21,967.10 points. Only auto stocks remained bullish in the market.
1. Electoral Uncertainty: Market experts say that the stock market had earlier assumed that this time too the BJP-NDA alliance would win the Lok Sabha elections. However, low turnout has cast doubt on BJP’s bumper victory. This reason is affecting market sentiment. Due to this, profit booking is taking place, due to which the market is going down.
2. Weak Quarterly Results: The results for the fourth quarter of 2024 are not as expected. Many companies have presented weak results. On one hand, there has been selling in those stocks. On the other hand, shopping has also not been encouraged.
3. Impact of US Fed’s aggressive stance: Recent hawkish rhetoric from US Federal Reserve officials has increased pressure on Indian equities. This week, Minneapolis Federal Reserve Chairman Neel Kashkari said he did not expect an interest rate change this year, citing stable inflation and the housing market. Foreign investors are withdrawing money from this.
4. Increase in oil prices: Oil prices have increased. Brent crude reached close to $ 84 per barrel. Meanwhile, West Texas Intermediate has risen above $79. Its effect is also visible on the Indian market.
5. Weekly Expiry: Market volatility also increased today due to weekly expiry. This also fueled the selling. According to stock market data, foreign institutional investors (FIIs) were sellers in the capital market on Wednesday and sold shares worth a net Rs 6,669.10 crore.
Market victim of nervous nineties
Market experts say that there are many reasons for the decline in the market. The biggest reason is the general elections. The market is a victim of nervous ninety nine regarding the general elections. Apart from this, there is heavy selling by foreign investors. Heavyweight stocks like Reliance Industries, Tata Consultancy Services, HDFC Bank are in decline. Apart from this, the prices of crude oil are increasing. The results of many companies have been bad. All these reasons have spoiled the mood of the market due to which selling is dominant.
Investors lost Rs 7 lakh crore
Due to the fall in the market, about seven lakh crores of investors lost their money. More pressure was seen on midcap and smallcap stocks in the market than on largecap stocks. The Nifty Midcap 100 index fell 927 points or 1.85 per cent to 49,109 and the Nifty Smallcap 100 index fell 465 points or 2.83 per cent to 15,995.
The biggest impact of the decline has been seen on FMCG, Metal, Realty, Energy, Infra, Commodity and PSE indices. All of them closed with a fall of 2 percent to 3.4 percent. 25 out of 30 Sensex stocks closed in the red. Santosh Meena, Head of Research, Swastika Investmart, said, “There is a decline in the market due to uncertainty over the election results. At present there is no major global reason behind this slowdown. Till now FIIs were selling and domestic investors were buying in the market. “We were doing this, but due to a big event like elections, domestic investors have reduced their buying and FIIs are continuously selling. Due to this, pressure is being seen in the market.”
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