Stock Market News: There was strong pressure in the Indian stock market on Tuesday amid continuous selling by foreign investors, rupee slipping to record low against the dollar and weak signals from global markets. BSE’s 30-share major index Sensex closed at 84,679.86 points with a fall of 533.50 points or 0.63 percent, while during trading it fell by 592.75 points and even reached a low of 84,620.61. Whereas NSE Nifty fell by 167.20 points or 0.64 percent and closed at 25,860.10 points. This was the second consecutive trading day when the markets closed in the red. A slight decline was recorded in the markets on Monday also.
Why is the market falling?
Talking about the shares included in Sensex, the maximum decline of 5.03 percent was recorded in Axis Bank. Apart from this, selling pressure was also seen in shares of Eternal, HCL Tech, Bajaj Finserv, Tata Steel, UltraTech Cement and Bajaj Finance. On the other hand, strength was also seen in some selected stocks, among which Titan, Bharti Airtel, Mahindra & Mahindra and Asian Paints were prominent. At the sectoral level, weakness in banking and IT stocks put additional pressure on the market.
Domestic investors did not get much support from the global markets either. Among the major markets of Asia, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng index closed with sharp decline. European markets were mixed in afternoon trade, while US markets closed in loss on Monday, due to which global investment sentiment remained weak.
Concern increased in rupee
A major reason for investors’ concern was the sharp decline in the rupee. The rupee fell 26 paise to close at its all-time low (provisional) of Rs 91.04 against the US dollar. According to Vinod Nair, Research Head, Geojit Investments Limited, continuous selling by foreign institutional investors (FIIs), weak sentiment globally and record fall in the rupee pushed the domestic stock markets into negative territory.
According to stock market data, on Monday, FIIs sold shares worth a net Rs 1,468.32 crore, while domestic institutional investors (DIIs) made a net purchase of Rs 1,792.25 crore. Despite this, the impact of heavy selling by FIIs dominated the market. Meanwhile, weakness was also seen in the international crude oil market and Brent crude fell by 1.54 percent to $ 59.63 per barrel. Overall, weak global cues, withdrawal of foreign capital and historic fall of rupee affected investor sentiment, due to which the market witnessed a sharp decline.
Also read: ‘Bharat Ji Ram Ji’ developed in place of MNREGA, why is there controversy and what will be the change
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
