Indian stock market today extended its losing spree for sixth straight session during morning deals. BSE Sensex today opened lower at 63,774 levels and went on to hit intraday low of 63,403 within few minutes of stock market’s opening bell today. The 30-stock index has been under sell of heat for the last six days and it has fallen from 66,428 levels to 63,403 levels, losing over 3,000 points in this time.
Nifty 50 today opened lower for sixth day in a row and hit intraday low of 18,920 levels, losing around 890 points in this time. Similarly, Bank Nifty index today opened lower at 42,708 levels and went on to hit intraday low of 42,371 levels, losing around 2,000 points in this time.
Why share market is down today?
On why share market is going down for the last six straight sessions, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “There is risk-off in global equity markets triggered by a combination of economics and geopolitics. The Israel-Hamas conflict continues to be a major headwind for markets. If the conflict lingers for long it has the potential to impact global growth,too, when the global economy is already in the midst of a slowdown. In the near-term, however, the strongest headwind for the market is the stubbornly high US bond yields. With the 10-year bond yield at near 5% FPIs are likely to be in the sell mode. Sectors like banking and IT which constitute the largest segments of the AUM of FPIs are likely to be under pressure. This will provide opportunities for long-term investors to buy quality stocks, particularly in banking, at attractive rates.”
Why Indian stock market is falling today — explained
Asked about the reasons for share market downtrend, Avinash Gorakshkar, Head of Research at Profitmart Securities listed out the following six reasons:
Israel-Hamas war
“Israel-Hamas war has entered 20th day and still there is no possible solution visible at current moment. This tension in the Middle East region has put uncertainty in the minds of investors, which has triggerd panic selling across bourses,” said Gorakshkar.
Rising US Treasury yield
“After hitting record 16-year high of over 5 per cent, 10-year US bond yield witnessed some retracement on Tuesday but it has been rising continuously since Wednesday and now it has once again come close to 5 per cent levels, which has put pressure on global markets including Dalal Street,” said Gorakshkar.
(This is a developing story. Please keep refreshing for further updates)
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Updated: 26 Oct 2023, 10:28 AM IST