Indian Stock Market Fall: A huge decline is being seen in the Indian stock market on Monday, 8th December, the first trading day of the week. Both the major benchmark indices have turned red like tomatoes. Despite the Reserve Bank of India cutting repo interest rates and providing liquidity support of about Rs 1.5 lakh crore to banks, what ultimately happened was that the Indian stock market crashed.
There was such a decline in the stock market that within a few hours investors lost about Rs 8 lakh crore. After the support of RBI, investors had hoped that there could be a rise in the market on Monday. However, nothing like this was seen…
condition of stock market
At around 2:50 pm on Monday, the 30-share BSE Sensex index was trading at 85,011.79, down 700.58 points or 0.82 per cent, while the NSE Nifty 50 was trading at 25,924.05, down 262.40 points or 1.00 per cent.
The reason for this decline in the market
1. Caution regarding US Fed interest cut
Investors are adopting a cautious approach regarding the two-day meeting of the US Fed on December 9 and 10. The results of the meeting can have an impact at the global level. Due to which investors are planning their investments thoughtfully.
2. Selling by foreign investors
Foreign institutional investors are not showing confidence in the Indian stock market. On Friday’s trading day, foreign investors sold shares for the seventh consecutive day. Rs 438.90 crore were withdrawn from the market on Friday.
Talking about the month of December, till now investors have withdrawn more than Rs 11 thousand crores. The effect of withdrawal of foreign investors was seen in the stock market and it turned red.
3. Continuous decline in rupee
At the beginning of the trading day on Monday, the rupee slipped 16 paise to 90.11 against the dollar. Also, the rupee has been continuously weakening for the last few days. This could also be a reason for the decline in the market.
4. Rise in crude oil prices
In the international market, Brent crude of Gulf countries increased by 0.13 percent to reach $ 63.83 per barrel. Rising crude oil prices affect India’s import expenses and fuel inflation. Due to which an atmosphere of caution is created in the stock market.
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