Why did Sensex, Nifty crash today? 5 reasons why stock market is down

The decline was especially intense in the PSU banking, metals, and real estate sectors, with every sector unable to remain in positive territory. Experts have pinpointed several factors contributing to the market crash, including the discovery of Human Metapneumovirus (HMPV) cases in India, weak global indicators, and continuing FPI outflows. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “The market is expected to be affected by the adverse factors influencing FII flows and several favorable domestic elements that could bolster the market.”

Feeble INTERNATIONAL INDICATIONS

Global economic circumstances continue to be adverse, with a strong dollar index at 109 and the 10-year US bond yield at 4.62%. Dr. Vijayakumar stated, “The FIIs will probably keep selling until the yields drop and the dollar steadies.” These worldwide issues are placing significant pressure on Indian markets.

SECTORIAL DISPOSAL

Sectoral indices on the Nifty were significantly down, with Nifty PSU Bank declining by 3.63%. Nifty Metal and Realty experienced significant drops, falling by 2.98% and 2.77%, respectively. Wider indices, such as Nifty Smallcap100, experienced significant losses as selling pressure increased throughout the market.

FEBLE Q3 ACTUALIZACIONES DE NEGOCIOS

Worries regarding poor business reports from essential industries, especially banking and FMCG, have further weakened sentiment. Chowdhury remarked, “Markets have faced pressure largely because of poor business reports from companies, particularly banks and certain FMCG stocks.”

FPI DISPOSING AND INCREASING DOLLAR

Ongoing FPI selling and a rising dollar have intensified the market decline. Manish Jain, Director at Mirae Asset Capital Markets, pointed out the difficulties: “The government’s capital expenditure continues to be elusive, the Rupee depreciation has worsened, and a resurgence in consumption is still not apparent. The market is anticipating significant positive catalysts that have yet to appear.

VIRUS ALERT

Finally, the identification of two HMPV cases in Bengaluru created anxiety among investors. While the virus is anticipated to not create an impact similar to Covid-19, it triggered an immediate response in the markets.

Manish Chowdhury, Research Head at StoxBox, stated, “Market sentiment might have dipped slightly due to the initial HMPV cases detected in India, but the effect could be minimal since the mortality appears to be less than that of the Covid virus.”

With corporate profits, the forthcoming budget, and international trade regulations approaching, market fluctuations are expected to stay heightened in the short term.