Indian The trend of decline in the stock market that started from October is continuing. During this period, stock market investors have suffered losses worth lakhs of crores. BSE's major indices Sensex and NSE's Nifty 50 are going through a sharp decline after reaching record highs this year. Amid selling by foreign investors, weak second quarter results and increased valuations, Nifty 50 has fallen more than 10 percent from its record high in September.
Nifty 50 fell 10.44 percent from all time high
BSE Sensex had reached its all-time high of 85,978.25 on September 27 this year. Nifty also touched an all-time high of 26,277.35 on the same day. However, the markets fell into a severe decline from the beginning of October. The Sensex has fallen 8,397.94 points (9.76 percent) from its all-time high. Nifty is also down by 2,744.65 points (10.44 percent) from the record high.
Many big reasons behind the decline in the Indian stock market
“High valuations had already raised concerns, but the stimulus package in China diverted the flow of foreign institutional investors (FIIs) from India to China,” said Santosh Meena, head of research, Swastika Investmart Ltd. The weak results of the second quarter further fueled this exodus. Apart from this, the increase in US bond yield and dollar index further increased the pressure on the Indian stock market, due to which FII selling increased.
Foreign investors withdrew Rs 94,000 crore in October
Foreign investors withdrew money from the Indian stock market in October by selling shares worth Rs 94,000 crore. Santosh Meena said the biggest disappointment this quarter was from FMCG stocks, where expectations of strong earnings were not met. Let us tell you that on Thursday also a decline was recorded in the Indian market, although this decline was not very painful. On Thursday, BSE Sensex closed at 77,580.31 points with a loss of 110.64 points and Nifty 50 also closed at 23,532.70 points with a loss of 26.35 points.
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