stock market The race for a major decline continues. Today, for the sixth consecutive day, a big decline was recorded in the market. Today Sensex fell 638.45 points and closed at 81,050 points. Similarly, NSE Nifty fell 218.85 points and closed at 24,795.75 points. All-round selling was seen in the market today. Let us tell you that in the last 6 trading days the Sensex has fallen by 5,100 points. Nifty has also fallen by about 1300 points.
Investors have lost Rs 22 lakh crore due to the huge fall in the market in the last few days. Let us tell you that when the market was closed on October 1, the market cap of companies listed on BSE was Rs 4.74 lakh crore, which came down to Rs 4.52 lakh crore on October 7. In this way, investors have suffered such a huge loss in the last 5 trading days. There is an atmosphere of fear among investors due to such a huge fall in the market. In such a situation, will the market continue to decline further or will it bounce back? Let us know what market experts have to say about the Indian stock market?
Further decline of 200 points is possible
Veteran market expert Sandeep Jain told India TV Told that there could be another big fall of 200 points in the market. He said that the Indian market has become further weak after today’s fall. Nifty has closed below 25000, which indicates technical weakness. Next support of Nifty is near 24,500. From here the market is expected to take reversal. He told that the ups and downs in the global market, the Chinese market has returned bullish after four years and the increasing global tension is working to take the Indian market down. Expensive valuation is also becoming a major reason for selling.
Indian market continues to decline due to these 5 reasons
- Fear of foreign investors: Taking a sudden U-turn, foreign investors (FPIs) started selling on a large scale in the Indian market in October. The selling was mainly due to the outperformance of Chinese stocks. The Hang Seng index has surged 26 percent in the past month and the rise is expected to continue as Chinese stocks are deeply undervalued. This is affecting the Indian market. Foreign investors are withdrawing funds from here and investing them in China.
- Expensive valuation of Indian market: Currently, Nifty is trading at 21.5 times its one-year forward earnings, which is higher than its historical average of 20.4 times. In contrast, the MSCI China gauge still trades at 10.8 times forward earnings, below its five-year average of 11.7 times. Moreover, domestic midcap and smallcap indices are valued at a 59 per cent and 12 per cent premium, respectively, to Nifty-50. Its effect is also visible on the Indian market. The market continues to decline.
- Fear of BJP’s defeat in state elections: According to the exit polls regarding the recent state elections in Haryana and Jammu and Kashmir, BJP does not seem to be forming the government in these two states. The results from the states, though not very significant, can impact the market.
- Q2 results of companies: September quarter results will start coming this week. This time no strong results are expected. Its effect is also visible on the Indian market.
- Geopolitical Concerns, Oil Prices: The war between Israel and Iran has raised geopolitical concerns. There are concerns that rising tensions in West Asia could send oil prices rising further. On Monday, Brent futures for December delivery were trading 0.64 percent higher at $78.59 a barrel. Its effect is also visible on the stock market.
