Earthquake in the stock market! Why did there suddenly come such a big selloff? Know the 3 triggers that sank 10 stocks

Reason Behind Share Market Fall: There has been a continuous decline in the Indian stock market for the last few days. On Tuesday, the second trading day of the week, Sensex-Nifty were seen falling with the opening. As the day’s trading progressed, the decline in both the indexes intensified. An hour before the market closed, BSE Sensex fell by more than 500 points, while NSE Nifty closed with a fall of more than 160 points. Let us know why the decline in the stock market continued on Tuesday?

First of all, if we talk about the movement of Sensex-Nifty, on Tuesday, BSE Sensex opened at 85,025 with a decline compared to its previous closing of 85,213.36 and then its decline kept increasing. At the time of trade, this 30-share index slipped more than 500 points to 84,654.25. However, it fell 533 points to close at 84,679.

Nifty-50 seen in red mark since the beginning

Like Sensex, Nifty-50 also appeared to be trading in the red zone with a decline since the beginning. After slipping from its previous close of 26,027 and opening at 25,951, this index of the National Stock Exchange fell to the day’s low level of 25,848.15 during trading and finally closed at 25,860 with a fall of 167 points.

3 main reasons for the decline in the stock market

First reason: decline in Indian rupee

If we talk about the major reasons behind the sharp decline in the stock market, the biggest reason seems to be the decline in the Indian currency rupee. The rupee has been falling continuously for the last few days and on Tuesday it crossed the level of 91 against the dollar. This is the first time in history that the rupee has fallen below this level. The rupee has come under pressure due to many other reasons including FPI selling.

Second reason: indifference of foreign investors

Another reason behind the decline in the market can also be considered to be the continuous selling by foreign investors. If we look at the latest data of FPI withdrawals, in the first two weeks of the last December of the year, these investors withdrew Rs 17,955 crore from the Indian markets. On the last trading day on Monday, he sold about Rs 1,468 crore. This selling had a negative impact on investor sentiment and the market witnessed a decline.

Third reason: Impact of foreign markets

There has been continuous chaos in foreign markets for the last few days. On Tuesday too, a sharp decline was seen in other Asian markets including Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s Kospi. There is slowdown in the American market also. Due to these bad global signals, the decline in India is not showing any signs of stopping and the stock market is crashing every day.

Also read: Stock market crashes on weekly expiry, Sensex falls by 530 points, Nifty falls by 130 points

These 10 stocks fell the most

Amidst the market decline, shares of many big companies were seen scattered like cards. BSE Largecap Axis Bank Share (5.03%), Eternal Share (4.63%), HCL Tech Share (2.03%) closed with losses. At the same time, Ola Electric Share (7.73%), Policy Bazar Share (5.52%), AIA Share (3.63%), BDL Share (3.33%) and SunTV Share (3.26%) included in BSE midcap category closed with a slip. small cap stocks Maninds Share (6.12%) and JaiBalaJi Share (6.07%) closed with losses.