Current state of the stock market: The primary causes of the Indian share market’s decline, according to experts, are selling in the broad market, negative global cues, selling by FIIs, the impending US Fed meeting, and rising crude oil prices.
Today’s stock market:
During Friday’s trading, the mid-cap index plummeted more than 1.40 percent, while the small-cap index plummeted one percent.
Stock market today:
Following a Thursday retreat surge, there is once more sell-off pressure on the Indian stock market during Friday trades. The small-cap index has dropped by about one percent, while the mid-cap index has declined by more than 1.40 percent, putting further pressure on the whole market. Among the major benchmark indices, the BSE Sensex has dropped by 550 points, and the Nifty 50 index has dropped by almost 200 points. During the intraday session, the Bank Nifty index corrected by about 400 points, or 0.85 percent. The Indian share market has been dragging, say stock market experts, for a number of reasons, including selling in the broad market, weak global cues, selling by FIIs, an impending US Fed meeting, and rising crude oil prices.
Sharp selling in the overall market:
“The stress test trigger is putting significant selling pressure on the small-cap and mid-cap indexes. Investors are once more selling aggressively in the small- and mid-cap segments, barring Thursday’s respite surge, according to Sandeep Pandey, Founder of Basav Capital.
Negative feelings around the world:
“The US stock market had a sell-off stress following the poor US PPP statistics, which further harmed Dalal Street’s mood. The US economy’s resilience has been called into question by this, according to Profitmart Securities Head of Research Avinash Gorakshkar.
According to a labour department report, the Producer Price Index (PPI) increased by 0.6 percent in February over the previous month. The PPI grew by 1.6 percent in the year ending in February.
Upcoming US Fed meeting:
“The market was anticipating a rate drop in the near term following US Fed Chair Jerome Powell’s speech before the US Congress, but the US inflation has once again gained prominence following this week’s dismal US economic statistics. Thus, there is total ambiguity surrounding the US Fed’s decision to decrease interest rates, which also explains why there isn’t a worldwide catalyst supporting the Indian markets, according to Avinash Gorakshkar.
FIIs’ selling:
“Selling in the Indian stock market has further intensified due to the heavy selling in the cash segment by the foreign institutional investors (FIIs).” The US dollar rate has recovered in recent sessions due to the uncertainty around the US Fed’s rate decrease.
The US dollar index is currently trading at 103.50, having reclaimed the 103 mark. One potential factor that has contributed to the exacerbation of the Indian stock market crisis is FIIs withdrawing their funds from equities and shifting them to the currency market, according to Saurabh Jain.
Increasing crude oil prices:
“The Indian government has instructed Oil Manufacturing Companies (OMCs) to reduce the oil prices after the MCX crude oil prices reached a 4-month high. This will likely contribute to India’s inflation. According to Saurabh Jain of SMC Global Securities, “the market is anticipating a cascading effect on the Indian economy following this GoI’s move.”