Investors saw stars in the stock market during the day, these are the five big reasons for the decline…

New Delhi. There was such a selling wind in the stock market today that Sensex and Nifty came down by almost 2 points. According to Mint, there came a time in the day's trading when investors of BSE listed companies reached a loss of Rs 9 lakh crore. This decline is already being anticipated. Unbridled selling by foreign investors was pointing towards this crash. On Monday, the first day of the week, the 30-share Sensex closed at 78,760, falling 963.84 points or 1.21 per cent. At the same time, Nifty of 50 shares fell by 1.27 percent or 309 points and closed at the level of 23,995.

!The biggest fall in shares today was Adani Ports, which saw the biggest fall of 3.23 percent on Sensex. After this, there was a decline of 3 percent in Reliance Industries, 2.68 percent in Sun Pharma, 2.53 percent in Bajaj Finserv and 2.45 percent in NTPC. Whereas Mahindra & Mahindra and Tech Mahindra closed with a gain of about 2 percent. Why did this fall happen? 5 main reasons are being given behind this fall. Impact of US election. In the US presidential election, there is a fight between Democratic candidate Kamala Harris and Republican Donald Trump. There is tough competition, which has increased uncertainty in global markets.

Geojit Financial Services' V.K. According to Vijayakumar, the election results may cause short-term volatility in the markets, but in the long term, economic factors such as US growth rate, inflation and Federal Reserve policies will determine the direction of the market. High valuations in the Indian market According to equity research platform Trendlyne, Nifty The current PE ratio of 50 is 22.7, which is slightly higher than the average of the last two years. This high valuation is also starting to irritate investors. However, Pankaj Pandey of ICICI Securities believes that despite the recent correction, high valuations may remain due to the long-term growth potential and stability of the Indian market. Federal Reserve's decision of 25 basis points in the US Federal Reserve meeting on November 7. There is a possibility of rate cut. However, it is likely that it may have limited impact on the market as it has already been incorporated into the market.

Selling by foreign investors: Before the US elections, foreign portfolio investors (FPIs) have made huge sales in the Indian market, while domestic institutional investors (DIIs) are also cautious. According to Santosh Meena of Swastika Investmart, funds are flowing out of India due to profit-booking by FIIs and possible stimulus package in China, which has increased the pressure in the Indian market. Weak Quarterly Results September quarter results of Indian companies have been weaker than expectations. , especially in the commodity sector. According to Pankaj Pandey of ICICI Securities, the weak quarterly results have negatively affected the market sentiment.

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