The Indian stock market opened down on Friday morning trades, extending the selling frenzy for an additional session. Within minutes of the Opening Bell, the Nifty 50 index hit an intraday low of 24,567 after opening with a downside gap of 24,664. The 50-stock index dropped around 560 points throughout four sessions after hitting its intraday low.
The BSE Sensex, which recorded around 1,564 points in four days, too opened lower today at 80,749 and reached an intraday low of 80,409. The Nifty Bank index saw a lower opening at 51,261 and fell as low as 51,000 during the day. After hitting the intraday low, banking stocks, however, attracted purchasing at lower levels and recovered the green area.
Why is the share market falling today?
Experts in the stock market claim that the uncertainty in both the domestic and international markets is causing selling pressure on the Indian stock market. They claimed that the rapidly approaching US presidential election and the escalating tension in the Middle East have left foreign investors in a state of uncertainty. In the domestic market, DIIs are awaiting the results of the Maharashtra State Assembly elections. In addition, they stated that the 2024 season’s second quarter results have fallen short of market expectations, and the declining value of the Indian rupee (INR) has increased talk of pressure on the country’s fiscal deficit.
US Presidential Elections
“The FIIs are selling heavily as there is a buzz about a close fight in the fast-approaching US Presidential polls. As DIIs are not buying in current markets, the market is unable to find support at the lower levels,” said Mahesh M Ojha, AVP — Research at Hensex Securities.
Geopolitical tension
“Due to the geopolitical tension in the Middle East, the market is unsure about the upcoming sessions. This status of uncertainty is also a reason for sharp selling in the Indian stock market,” said Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities.
Disappointing Q2 results 2024 season
Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal, referred to the Q2 results of the 2024 season, saying, “The selling pressure on Dalal Street has also been exacerbated by the disappointing Q2 earnings from major companies.”
Maharashtra State Assembly elections 2024
Mahesh M Ojha of Hensex Securities said, “The DIIs are waiting for the Maharashtra Assembly poll results on why DIIs are not buying in the current Indian stock market. After the Haryana Assembly election, this upcoming assembly election holds the key as it would signal the central government’s strength in India’s financial capital.”
Weakness in the Indian Rupee
“The Indian rupee fall in the recent sessions is also a major reason for weakness on Dalal Street as it has filed buzz about the upcoming pressure on the Indian fiscal deficit,” said Ojha.
Asked about the important levels regarding the Nifty 50 index, Anshul Jain said, “The Nifty 50 index has broken its crucial support of 24,700, and the 50-stock index would find immediate support at 24,500 whereas crucial support for the frontline index is now placed at 24,350 to 24,300 mark.”
