The daily decline in the stock market has scared the investors. Earlier, mid and small cap stocks were seeing a decline, but now large cap stocks are also facing a decline, due to which the market situation has become even more worrying. This decline since last month has worried all new and old investors, because they fear that this decline may increase further.
In the portfolio of many investors, the returns of the last 6 months and one year have ended or have become very low. At such a time, the biggest question that arises is when will this decline end? And after all, why is the market falling every day? Investors are waiting for the situation to become clear so that they can take the right decision. Now talking about today, Nifty50 was trading at 23,538, down 344 points. At the same time, Sensex was at 77,644, down 1030 points.
Why is the stock market falling every day?
- The main reason for the fall in the stock market is the poor quarterly results of big companies. From Reliance to Asian Paints and IndusInd Bank, the results have scared the most.
- The second major reason is the surge in US 10-year bond yields and the dollar reached a four-month high, which may boost CPI inflation today. Investors are also worried about the strength of the dollar, as experts are expecting that inflation will rise due to strong US economic growth and aggressive trade policies after Trump becomes president.
- Yesterday, October retail inflation figures were released, which showed an increase. Retail inflation has reached 6.21 percent in October. This is more than the RBI’s limit of 6 percent. Inflation has increased this much after 14 months.
- Foreign investors are rapidly fleeing from the Indian stock market. Last month, more than 1 lakh crore rupees were withdrawn from the stock market. Last week, foreign investors withdrew 20 thousand crores. The main reason for withdrawing money from the Indian market is the boom in the global market and investors are getting more attracted towards the global market due to Trump’s arrival.
- The global market has also seen a decline last night. From the US market to Europe, Japan and the Chinese stock market, there was a decline, due to which the Indian stock market is also under pressure today.
When will the stock market recover?
Regarding the recovery in the stock market, experts say that now there has been a lot of correction in the Indian market. The market can make a bottom anytime and a boom can come. The stock market has come down a lot from the market’s high level. For example, the 52-week high level of Nifty has come down from 26,277.35 to 23,677.60 points.