Sensex breaks 774 points
The Bombay Stock Exchange’s Souktak Sensex fell 1.27 per cent or 773.69 points to close at 60,205.06 on Wednesday. At the time of market closing, out of 30 Sensex stocks, 8 stocks were on the green mark and the rest were on the red mark. At the same time, the National Stock Exchange’s Nifty fell 1.25 percent or 226.35 points to close at 17,891.95. At the time of market closing, out of 50 stocks of Nifty, 15 stocks were on the green mark and 35 stocks were on the red mark.
condition of sensex shares
condition of nifty stocks
These are the reasons for the fall in the market today
selling by foreign investors
Foreign Institutional Investors (FIIs) engaged in selling in Dalal Street. He had sold Rs 760.51 crore on Tuesday. The total withdrawal figure in this month has crossed Rs 17,000 crore. FIIs are currently investing money in relatively cheap Chinese markets.
Heavy selling in Adani’s shares
Adani Port was the biggest loser in the Nifty pack today. The decline followed a statement from short seller Hindenburg Research. It said it will hold short positions in Adani Group shares through US-traded bonds and non-Indian traded derivative instruments. It also described Adani Group companies as overvalued by more than 85 per cent. Due to this, all 10 shares of Adani Group were on the red mark in the initial trade.
F & O Expiry
Today, the fall in the market also came due to weekly and monthly derivatives expiry. F&O contracts expire on Thursday. But tomorrow is a market holiday due to Republic Day. Due to this the expiry day was today only.
Weak signal in global market
US and European stock futures fell on Wednesday. While Asian shares edged marginally higher amid a slide in investor sentiment after mixed corporate earnings. The Nasdaq 100 contract fell 0.7 percent, following a modest decline in the underlying index on Tuesday. S&P 500 and Euro Stoxx 50 benchmark futures also fell. The Dow Jones Industrial Average closed down 0.3 percent on Tuesday. At the same time, the S&P 500 declined by 0.1 percent and the Nasdaq by 0.3 percent.
Panic before the budget and fear of the Fed
Due to two big events coming next week, the market declined today. Finance Minister Nirmala Sitharaman is going to present the general budget next week. Along with this, the decision of the meeting of the US central bank Federal Reserve is also going to come. Coincidentally, both the events are on February 1. Prior to these events, Nipty is trading in the range of 17800 to 18200. A good budget and positive signals from the Fed could break this upper band. On the other hand, if the long term capital gains tax rate hike is announced in the budget and the Fed hikes interest rates aggressively, the Nifty may break the lower range.
crude oil prices
Crude oil prices have increased on Wednesday. This spurt in crude oil was due to expectations of demand recovery in China, the top importer of crude oil. In the previous sessions, the prices had declined due to concerns over global economic growth. But now the possibilities of increasing demand have increased. Brent futures were seen trading at $86.33 a barrel on Wednesday afternoon.