The Indian stock market has continued its downward trend, with the Nifty 50 index opening lower on Friday at 24,664 and quickly dropping to an intraday low of 24,567, marking a loss of about 560 points over four sessions. Similarly, the BSE Sensex started at 80,749, reaching a low of 80,409, which translates to a decline of around 1,564 points in that timeframe. The Nifty Bank index also opened lower at 51,261 before hitting an intraday low of 51,000, although it later saw some buying interest that pushed it back into positive territory.
Key Reasons for the Market Decline
Experts attribute the current market slump to several factors:
1. US Presidential Elections: Uncertainty surrounding the upcoming US elections is causing hesitation among international investors, affecting market sentiment.
2. Geopolitical Tensions: Rising tensions in the Middle East are contributing to a cautious outlook among investors, impacting global markets.
3. Maharashtra State Elections: Domestic institutional investors (DIIs) are adopting a wait-and-see approach as they look ahead to the Maharashtra State Assembly elections, further stalling market activity.
4. Disappointing Q2 Results: The Q2 earnings season for 2024 has seen results fall short of market expectations, leading to a lack of confidence among investors.
5. Weakening Indian Rupee: The declining value of the Indian National Rupee (INR) is raising concerns about the fiscal deficit, adding additional pressure to the market.
These combined factors are creating a challenging environment for investors, leading to the ongoing selling pressure in the Indian stock market.