The Indian stock market has been in the red for some time now. Bears dominate Dalal Street and investors lose money as charts point south. Almost every industry is experiencing a selling frenzy. When markets closed on Friday, the Nifty index, metals, IT, banking, autos and financials were among the biggest losers.
The stock market is down. Its main indexes NIfty and Sensex came under selling pressure for the fourth week in a row. They were all down 2-3%. Although little respite was seen in ITC stocks which were the biggest gainers of the Nifty 50, although the gain was only 1%
The two major stock indexes – Sensex and Nifty – fell around 2% when the market closed for the weekend. This is the worst performance of the two indexes since last November. Market experts believe that raising interest rates in quick succession to rein in runaway inflation could have slowed global economic growth.
The NSE Nifty 50 index fell 1.90% or 317.20 points to 16,365.45, with all sectors trading in negative territory. The S&P BSE Sensex fell 1.83% or 1,020.78 points to 54,681.45 as markets closed. Benchmarks have been trending lower for four weeks. During this period, they lost about 6%.
As always, the stock market reacts to several external stimuli. The surprise interest rate hike by the Reserve Bank of India, withdrawal and selling by foreign investors, and lackluster corporate results were possible reasons for investor withdrawals.
According to Refinitiv Financial Solutions, foreign investors sold Indian stocks for $635 million this week and $881 million the previous week.
Also, the US market is not growing either. Market expert Prashanth Tapse, VP Research, Mehta Equities, said the domestic market is also reacting to the global market which is worried about high inflation and Fed rate hikes. The Fed raised interest rates on Wednesday by half a percentage point. Things are not looking up as the US Federal Reserve may raise interest rates further to combat strong inflationary trends. Some experts estimate that the Nifty could affect 14,000 if the situation does not improve in the United States and the war in Ukraine continues unabated.