Indian Stock Market Continues to Fall for the Fifth Straight Session
The Indian stock market has been facing a downward trend for the fifth consecutive session, with both the Nifty 50 and BSE Sensex indices recording significant losses. The Nifty 50 index opened lower and touched an intraday low of 22,184, while the BSE Sensex opened lower and hit an intraday low of 72,891. The Nifty Bank index has also been under selling pressure for the last seven straight sessions, losing 1600 points.
Several factors have been identified as the primary reasons for the ongoing sell-off in the Indian stock market. These include the ongoing Lok Sabha elections, continuous selling by Foreign Institutional Investors (FIIs), a bounce back in US dollar rates, hawkish statements from the US Federal Reserve, unimpressive Q4 results for the 2024 season, and the rising India VIX Index.
Experts in the stock market have pointed out that the overbought condition of Indian stocks due to the anticipated victory of the BJP-led NDA in the Lok Sabha polls has triggered premature profit booking. Additionally, FIIs have been heavy sellers in the market this month, with net sales in both the cash segment and Future & Option (F&O) segment.
The hawkish stance of the US Federal Reserve and the rise in US Treasury yields have further added pressure on Indian stocks. The non-impressive Q4 results for the 2024 season have failed to attract additional buying on Dalal Street, leading to profit booking by investors. The continuous rise in the India VIX Index has also made investors cautious about entering the volatile market.
As the market conditions continue to evolve rapidly, investors are advised to consult with certified experts before making any investment decisions. The current situation in the Indian stock market is a reflection of the various global and domestic factors at play, and careful consideration is essential for navigating through these challenging times.
