Why Share Market Fall Today: Due to the huge fall in the stock market, investors have lost about 6 lakh crore rupees today. Chris Wood of Jefferies has reduced his weightage on India by 1% and increased his weightage on China by 2%.
Why Share Market Fall Today : Why did the stock market fall so much?
Iran's missile attack on Israel, the possibility of a major retaliation from Israel or SEBI's new rules.. what is the reason for the fall in the market today? This is the question in the minds of millions of investors in the Indian stock market. The market opened with a huge fall today. The Sensex opened at 83,002.09 with a fall of 1264 points. Both the major indexes have seen a huge fall in early trade. At 10:35 am, the Sensex was seen trading at 83,396 with a fall of 1.03 percent or 869 points. At the same time, the Nifty was seen trading at 25,531 with a fall of 1.03 percent or 265 points. Due to this fall, investors have suffered a loss of about Rs 6 lakh crore in the market.
Stock market expert Dr. Ravi Singh told India TV that the main reason behind this big fall in the Indian stock market today is the war-like situation between Iran and Israel. According to reports, the Israeli army has confirmed the death of 8 soldiers including a team commander during a ground operation in southern Lebanon. Earlier on Tuesday night, Iran attacked several Israeli cities with about 200 missiles. After this, strong retaliation can also be taken from Israel. These circumstances have created great instability in the Middle East.
Rise in crude oil prices:
Crude oil prices have risen significantly since tensions in the Middle East increased. Tensions in the Middle East could threaten supplies from major crude oil producers. Brent crude reached $ 75 a barrel after Iran's missile attack. At the same time, WTI crude reached $ 72 a barrel. If Israel attacks an oil installation in Iran, crude oil prices will jump sharply. This will be bad news for an oil importing country like India. Investors in the stock market are also worried about this.
The market today reacted to the recent decision by market regulator SEBI to tighten the rules for the futures and options (F&O) segment. According to Dr. Ravi, these rules include limiting one weekly expiry per exchange and increasing the contract size. This may lead to a decline in trading volumes.
Foreign investors sell-off:
Investors in India are worried about the surge in Chinese stocks. Chris Wood of Jefferies has reduced his weightage on India by 1% and increased his weightage on China by 2%, Dr Ravi said. Following the announcement of economic stimulus measures by the Chinese government last week, analysts have predicted a continued rally in Chinese stocks, which could lead to outflow of funds from India. The SSE Composite Index rose 8% on Tuesday and has gained over 15% in the past week. As a result, foreign institutional investors have pulled out Rs 15,370 crore from Indian equities in the last two trading sessions. Dr Ravi said that a big sell-off has been seen from foreign investors. FIIs have also sold cash worth Rs 5579 crore on Tuesday.
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