The stock market has witnessed a significant decline for the third consecutive day. The Sensex plummeted by a total of 1100 points, and the Nifty slipped below 25400. Selling by foreign investors, weakness in global markets, and rising crude oil prices have heightened investor concerns.
Share Market: The Indian stock market has been experiencing a downtrend for the past few days. A significant fall for the third consecutive trading session has escalated investor worries. The Nifty has slipped below 25400, and the Sensex is trading around 82777 after a 531-point drop. Selling pressure is evident across almost all sectors.
However, metal stocks have shown a slight recovery from their lower levels. Amidst this decline, shares like Adani Enterprises, Shriram Finance, ICICI Bank, Power Grid, and Adani Ports are showing resilience. Conversely, stocks such as Bharti Airtel, HCL Tech, Apollo Hospitals, and Wipro are down by 2 to 4 percent.
Three Main Reasons for the Decline
1. Weak Global Cues
A significant downturn in Asian markets exerted pressure on the domestic market. South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng Index all closed in the red. Similarly, US markets also closed lower. The decline in the US market was attributed to concerns over a government shutdown and selling pressure in tech and AI company shares.
2. Continuous Selling by Foreign Investors
FIIs are consistently withdrawing funds from the stock market. On Thursday, foreign investors sold shares worth ₹3,263.21 crore. Experts believe that substantial foreign selling has weakened market sentiment and increased uncertainty among investors.
3. Strengthening Dollar and Crude Oil
The US dollar has reached a 5-month high. Concurrently, global oil benchmark Brent crude rose by 0.3% to $63.57 per barrel. Rising crude oil prices could impact India's inflation and trade balance. These factors are contributing to the pressure on the market.
Nifty's Support Level
According to Jigar Patel of Anand Rathi Investment Services, the 25300 level could act as a crucial support for the Nifty, where the market appears to be bottoming out. Meanwhile, 25500 will remain a significant resistance level for the Nifty. Some stability is anticipated in the market between these levels.
