During early trading on Monday, the stock market opened on the green mark but within a few hours there was a sudden earthquake in the market. Seeing this, the market went down by more than 1200 points. Sensex fell at 77,964 points and Nifty fell 388.70 points to close at 23,616 points. While the all-time high of the index is 85,978.25 points, if seen in this way, the Sensex has fallen by about 8000 points from its all-time high, i.e. a fall of more than 10 percent.
Investors are worried for the last three months. Nifty is around 24 thousand for the last 3 months. It is believed that the market will go up in the month of January. Since the Budget will be presented on February 1 and the government’s focus is on the economy, capital expenditure announcements are likely to be made across several sectors. But till now the market does not seem to be getting any strength from anywhere.
These are the reasons for the market decline on January 6
A new virus in China
A new virus has once again emerged in China, due to which investors are worried. This is being said to be the major reason for the decline in the Indian market, because the first case of this new virus spread in China has been seen in Bengaluru. Although it is in the initial stages and the government is cautious, the fear of Corona epidemic has not yet gone away from the minds of investors.
ups and downs in the global economy
Recently, some instability has been seen in the global economy, which has also affected the Indian market. Donald Trump will take oath in America on January 20, the eyes of the whole world are on him. If Trump takes any tough decision, it will affect the global market.
Increase in crude oil prices
In the international market, Brent crude has reached $ 76.66 per barrel, while WTI crude is trading at $ 74.14 per barrel. This is not a good sign for the Indian economy. If the price of crude oil increases further, its impact will be visible on India. Especially the possibility of increase in inflation rate will increase.
Dollar continues to strengthen
The strengthening of the dollar is not a good sign for the Indian economy. At present the price of one dollar has become Rs 85.82. Due to which both exports and imports are affected. Which is having a direct impact on the government treasury. Apart from this, selling by foreign investors is also continuing. The main reason for the decline in the Indian market is the daily selling by foreign investors.
Suspense on third quarter results
Indian companies will start presenting third quarter results from this week. This week many big companies including TCS will present their results. Meanwhile, the country’s largest bank HDFC has given the third quarter update. Who looks weak. Due to which the market sentiment is deteriorating today.
A mixed effect of all these reasons is being seen on the Indian stock market. This is a time for investors to be patient and prudent. Experts say the market may stabilize again in the long term. In such a situation, investors are advised to keep their portfolio diversified.
