indian stock market Today, the big decline continued for the 5th consecutive day. Both the benchmark indices, Sensex and Nifty, have fallen by about 10 percent from their respective record highs in September. In the last five sessions alone the indices have fallen by about 4 per cent. Nearly Rs 47 lakh crore of investors have been lost due to the huge fall in the market that has been going on for more than a month. The portfolios of most retail investors have reached red. Many stocks included in the portfolio have fallen by 50% to 60%. In such a situation, they are not able to understand why this decline in the market is continuing and to what extent the market can still fall. If you also invest money in the stock market then you must be looking for answers to these two questions. Let us answer your questions.
1. Strong rise in inflation
Once again inflation has broken the record of 14 months. Let us tell you that due to increase in cost of food items, retail inflation increased to 6.21% in October. In the previous month i.e. September it was 5.49 percent. The surge in inflation has further worsened the bad sentiment in the market. This has led to big selling today.
2. Heavy selling by foreign investors
Foreign institutional investors (FIIs) are creating huge panic in the Indian market. So far in November, FIIs have sold shares worth Rs 23,547 crore, while in October they had sold shares worth Rs 94,017 crore. Due to this the market is continuously collapsing.
3. Rupee at record low
The Indian Rupee reached its all-time low as the dollar strengthened. Donald Trump's victory in the US election has boosted the dollar index, which is up 1.8% so far this month. This has also affected the market.
4. Bad results of companies
How far can the market break now?
Shrikant Chauhan, Equity Research Head, Kotak Securities said that profit-booking is continuing in the market. There is profit booking in all major sectoral indices. Bearish candles on the daily chart are indicating further weakness from current levels. We believe that, the current market structure is weak but oversold; Hence we can expect an intraday pullback rally from the current levels. If the market breaks further then the level of 23400 to 23200 can be seen.
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