Stock Market Today: The bullish trend that had been going on in the stock market for the last two trading sessions came to a halt on Monday. Amid heavy profit-booking and strong selling by foreign investors, BSE Sensex fell 609.68 points (0.71%) to close at 85,102.69, while NSE Nifty fell 225.90 points (0.86%) to 25,960.55. During trading, at one time Sensex fell 836 points to 84,875.59 and Nifty fell 294 points to 25,892.25.
Why is the market falling?
According to market experts, investors have adopted a cautious approach ahead of the US Federal Reserve’s policy meeting to be held this week, due to which the market sentiment has weakened. Among Sensex companies, shares of Bharat Electronics, Eternal, Trent, Tata Steel, Bajaj Finance, Adani Ports, Bajaj Finserv, SBI, PowerGrid, Asian Paints, Tata Motors, Titan, NTPC, Kotak Mahindra Bank, L&T and Bharti Airtel recorded a huge decline, while shares of Tech Mahindra, HCL Tech, Reliance Industries and HDFC Bank remained in the rise.
What do experts say?
According to Vinod Nair, Head of Research, Geojit Financial Services, despite strong GDP data and recent interest rate cut by RBI, near-term sentiment remains under pressure due to global monetary policy concerns, continued selling by FIIs and rupee weakness.
With Japanese bond yields hitting a multiyear high, fears of global volatility and the unwinding of the ‘yen carry trade’ have increased. In Asian markets, South Korea’s Kospi rose 1.34%, China’s Shanghai Composite rose 0.54% and Japan’s Nikkei rose 0.13%, while Hong Kong’s Hang Seng fell 1.23%. European markets were trading with mixed sentiment, while American markets closed with gains on Friday.
FIIs sold shares worth Rs 438.90 crore on Friday, while DIIs bought shares worth Rs 4,189.17 crore. Global oil standard Brent crude also fell 0.61% to $ 63.37 per barrel.
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