After touching record high, stock market suddenly fell face down, this report of Fitch increased the tension of investors

Tremendous high-voltage drama was seen in the Indian stock market today. The momentum with which the market had taken off in the morning trading vanished by the afternoon. Under all-round selling pressure, the Sensex slipped more than 500 points from its day’s high. This sudden fall of the market not only surprised the retail investors but also created a stir on Dalal Street. Along with global signals, a report by rating agency Fitch is also being considered a major reason behind this decline.

Profit booking dominates after a great start

The beginning of the trading session was very explosive. Both Sensex and Nifty opened in the green and within no time the market touched a new record level. But due to failure to hold on to the upper levels, investors started booking profits. Due to heavy selling in shares of banking, auto and IT sectors, the market moved towards the red mark in no time. Experts say that such a correction was natural in the market due to high valuations, but Fitch’s report added fuel to the fire.

Fitch Ratings reduced India’s GDP estimate

The latest report of rating agency Fitch is believed to be a major reason behind this decline in the market. Fitch has reduced India’s GDP growth forecast for the current financial year. This move by the rating agency weakened the sentiment among domestic and foreign institutional investors (FIIs). Fitch believes that the impact of global economic recession and rising interest rates can also be seen on the growth of the Indian economy. As soon as this negative news arrived, the selling phase in the market intensified.

Most pressure was seen in these sectors and shares

In today’s volatile business, the heavyweight stocks were hit the hardest. The fall in big stocks like Reliance Industries, HDFC Bank and ICICI Bank helped drag the index down. Apart from this, metal and realty indices also appeared under pressure. However, some buying was seen at lower levels in the pharma and FMCG sectors, which tried to prevent the market from falling further.

What should investors do next?

Market experts believe that there is no need to panic due to this decline. This could be a healthy correction, as the market had been rising continuously for quite some time. In the coming days, investors’ eyes will be focused on the trend of global markets and crude oil prices. Experts advise that in this volatile environment, investors should avoid investing lump sum money and adopt the strategy of installment investment (SIP) in stocks with good fundamentals.