stock market All-round selling has been seen. By 11 am, the Sensex has fallen 1,427.09 points to reach 78,297.02. At the same time, NSE Nifty is trading at 23,843.90 points with a big fall of 460.45 points. Due to this big fall in the market, investors have lost around Rs 4 lakh crore till now. At the same time, in the month of October also about Rs 30 lakh crore of investors lost money. In such a situation, let us know where this decline of the stock market will stop and what is the reason for this decline?
Reason for decline in Sensex and Nifty50
- The upcoming US presidential election between Kamala Harris and Donald Trump has created uncertainty. The election results may influence the policies of the US Federal Reserve and subsequently influence Indian interest rates. The results of the US presidential election are expected on November 6. Dr. V.K., Chief Investment Strategist, Geojit Financial Services. According to Vijayakumar, markets globally will remain focused on the US presidential elections over the next few days and there could be near-term volatility in response to the election results. Therefore, a big decline is being seen in the market today.
- The Federal Reserve has a monetary policy meeting on November 7. This meeting has increased uncertainty in the market, as expectations of a possible cut in interest rates may affect the behavior of investors. Its effect is also visible in the Indian market today.
- Weak results of companies which were less than expected in the second quarter have also worked to bring down the market. Q2 results indicate that Nifty EPS growth could go below 10% in FY25, making it difficult to sustain the current valuation of around 24x FY25 estimated earnings.
- Foreign investors have made huge sales in the Indian market for the last one month. Its effect is clearly visible on the stock. Indian markets have fallen rapidly. On the other hand, foreign investors are withdrawing money from here and investing it in the Chinese market, due to which there has been a rise in the stock market there.
- Oil prices rose more than $1 on Monday after OPEC+ suspended production increases in December. Brent futures rose $1.18 (1.61%) to $74.28 a barrel, while WTI crude rose $1.20 (1.73%) to $70.69. OPEC+ postponed its planned 180,000 bpd increase due to weak demand and increased non-OPEC+ supply. This also affected the Indian market today.
All these reasons have led to selling in the Indian market. This has caused the market to crash. Now the big question is what next? Market experts say that Nifty has a strong support level at 23,500. If the market breaks once and goes to 23,500, then recovery can be seen from there. Experts say that it would be better for market investors to sit on the sidelines and watch the show. Now is not the right time to invest money or trade.
