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Share Market Down: There has been a big decline in the Indian stock markets in the beginning of the second week of December. Due to this, on Monday (December 8), Sensex saw a fall of 802 points and Nifty fell by 229 points. Investor caution before the Fed meeting is being considered a major reason for the decline.
Share Market Down: A big fall is being seen in the Indian stock markets on Monday (8th December), the first trading day of the week. Sensex fell by 800 points during trading. Whereas Nifty fell to near 25,900. A major reason for the decline in the market has been the caution of investors before the US Federal Reserve meeting. Along with this, continuous FII selling, weakness of rupee, rising crude oil prices and rising India VIX also weighed heavily on the market sentiment. Let us know the 5 big reasons behind this decline in the stock market.
1. Cautious stance before US Fed meeting
Investors are cautious about the two-day meeting of the US Federal Reserve starting on December 9. Inflation data and year-end portfolio adjustment also became the reasons. Central banks of other countries will also hold meetings this week, but no major changes are expected.
2. Continuous selling by FIIs
Foreign Institutional Investors (FII) were seen selling for the seventh consecutive trading day on Friday. Foreign investors sold shares worth about Rs 439 crore on Friday. After the strong rally, valuations had become expensive, making the market more sensitive to downside.
3. Weakness in Indian Rupee
Rupee fell by 16 paise to reach 90.11. The pressure increased due to rising crude oil prices and selling by foreign institutional investors. Dollar demand from importers and corporates also weakened the rupee.
4. Rise in crude oil
Brent crude reached $63.83 per barrel. Due to oil becoming expensive, there is a concern that India’s import bill will increase, which increases fear in the market.
5. Rise in India VIX
India VIX, an index showing market fluctuations, jumped by more than 2 percent and reached 10.53. Increasing VIX means that uncertainty is increasing in the market and traders avoid taking risks.
