Why is the stock market continuously crashing, the speed of Nifty and Sensex remained slow on Monday also, know the reason

New Delhi: Sensex and Nifty saw a huge fall in Monday's trading session. Due to which there was recession disappointment among the investors. Indian markets faced a volatile environment amid pressure from global markets, foreign capital outflows and selling in IT stocks. The Indian market remained negative due to US Federal Reserve chief Jeremy Powell's statement, geopolitical tensions and other domestic factors. Here we will discuss the main reasons due to which the decline in the stock market continues.

A decline of about 3 percent was seen in the Nifty IT index. Major IT companies like Tech Mahindra, TCS, Infosys and Wipro fell by 2-4 per cent. Powell's statement affected investor confidence, leading to increased selling in the IT sector. The global conflict also affected Indian markets.

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Impact of US President's statement on the market

The US President authorized Ukraine to use American missiles for strikes deep inside Russia, raising concerns about conflict between Russia and Ukraine. Apart from this, the news of Iran's Supreme Leader Ayatollah Ali Khamenei being in coma also put pressure on the market. Foreign institutional investors (FIIs) sold shares worth ₹1,849.87 crore last week, taking the total selling figure in November to ₹22,420 crore. High valuations of domestic stocks, higher investments in China and strengthening of the US dollar forced foreign investors to withdraw capital from the Indian market.

Rupee weakness against dollar

India VIX, which is an indicator of market volatility, has increased by 5 percent to 15.51, which clearly indicates that there is an atmosphere of fear and uncertainty among investors. Weak signals from Wall Street and rising US bond yields further added to the market pressure. At the same time, the Indian rupee also remained under pressure against the US dollar. However, the rupee appreciated marginally by 8 paise to 84.38, but foreign investors may continue to exit India due to the strengthening dollar and US treasury yields. Due to this, the possibility of growth in the Indian market is decreasing.