Share Market Updates: The trend of decline in the Indian stock market is showing no signs of stopping. Today, on the fourth trading day of the week, the stock market had a slow start. Today the 30-share Sensex of BSE opened with a fall of 41 points at the level of 84518.
At the same time, Nifty of National Stock Exchange fell by 53 points and started trading at 25765. The effect of the decline in Asian markets is also being seen on the Indian stock market. Today, the weekly expiry of Sensex derivative contracts is also likely to have an impact on investor sentiment.
Indian equity indices closed with a decline on Wednesday. During this period, Nifty closed down by 41.55 points or 0.16 percent, while Sensex fell by 120.21 points or 0.14 percent to 84,559.65.
These are included in the top losers and gainers
Shares of Sun Pharma, TMPV, M&M, NTPC, Maruti Suzuki, Kotak Bank, Tata Steel and BEL are seen in loss in the trading so far. On the other hand, Infosys, HCLTech, TechM, TCS, SBI and ITC were among the top gainers.
Sector wise, Nifty Auto, Nifty Pharma and Nifty Realty were the top losers, with a decline of up to 1 percent. Meanwhile, Nifty IT and PSU Bank indices were seen trading up 0.9 per cent and 0.25 per cent respectively. In the border market, Nifty Midcap Index was down by 0.10 percent and Nifty Midcap Index was down by 0.10 percent.
Global market situation
On December 17, American stock markets closed with a decline. The Nasdaq Composite fell the most by 1.81 percent, followed by the S&P 500 which fell 1.16 percent and the Dow Jones Industrial Average was also down 0.47 percent. Its effect was visible on Asian markets today. Nikkei fell by 1.53 percent as soon as it opened and Topix also recorded a decline of 0.57 percent. South Korea’s Kospi was down 1.36 percent and small-cap Kosdaq was down 1.13 percent. In Australia, the S&P/ASX 200 index fell 0.3 percent in early trade.
Reasons for decline in stock market
Selling by foreign investors- The pressure on the market is increasing due to continuous selling by foreign institutional investors (FIIs). On Wednesday, December 17, foreign investors sold Indian shares worth Rs 1172 crore. Meanwhile, domestic investors (DIIs) bought shares worth Rs 769 crore. This is the fourteenth consecutive day when foreign investors sold Indian shares. So far in the month of December, foreign investors have withdrawn more than Rs 21,073 crore from the Indian stock market.
Fall in rupee- The record decline in rupee is also impacting the market. The rupee fell by 9 paise to reach a record low of 90.87 against the US dollar in early trade on Tuesday. However, the rupee made a spectacular recovery by gaining 0.7 percent against the dollar on Wednesday, December 17. The Indian rupee opened at 90.35 on Thursday, which is almost equal to the previous closing price of 90.37 against the US dollar.
Employment statistics in America- Even though there were excellent employment figures in America in the month of November. 64,000 jobs increased, but despite this, investors now seem to be cautious about December’s employment data because these figures will decide the direction of US interest rates, which will impact many other countries as well, hence investors seem to be avoiding taking too much risk.
Apart from this, investors are also waiting for the decision on the interest rate of the Bank of England in the UK, the announcement of the policy of the European Central Bank for the Euro Area and inflation and unemployment data from the US. Apart from this, the Bank of Japan has also started its two-day policy meeting, it is expected that it can increase the interest rate to 0.75 percent on Friday.
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