Why did the Indian stock market fall today?
These are the reasons given by experts.
Today’s stock market: Following negative global cues on the SVB or Silicon Valley Bank crisis, the Indian stock market fell for the fourth consecutive session on Tuesday. During mid-session, key benchmark indices were down by half to quarter to one percent, with about three hours remaining on Tuesday. According to stock market experts, Indian equities are plummeting due to weak global cues following the announcement of Silicon Valley Bank’s bankruptcy. They stated that the US dollar and Indian National Rupee (INR) depreciation, concern over the US Fed’s FOMC rate hike decision, and FIIs selling from emerging markets are some of the other factors that have dragged Dalal Street for the fourth consecutive session.
Crisis at Silicon Valley Bank
Avinash Gorakshkar, Head of Research at Profitmart Securities, explained why the Indian stock market is plunging “World market sentiment has shifted bearish following the US financial crisis, which began on Thursday last week with Silicon Valley Bank. Following the failure of Silicon Valley Bank, the fall of Signature Bank has further harmed market sentiment, leading to depreciation in US dollar rates and Indian currency. This weakening in the US dollar has sparked selling among FIIs, which has also contributed to the recent weakness in the Indian stock market.”
Profitmart’s Avinash Gorakshkar went on to say that the market is unsure about the US Fed’s FOMC result on rate hikes. If the Federal Reserve of the United States decides to suspend interest rate hikes, the markets may recover. But, if US Fed officials continue to talk aggressive about raising interest rates to manage inflation, the sentiment of Indian and global markets may deteriorate further.
Adani group stock weakness
Profitmart Securities’ Avinash Gorakshkar believes that weakness in Adani group companies is also to blame for the Indian stock market’s drop on Tuesday. The share price of Adani Enterprises, the group’s flagship stock, fell by more than 7% today, while Adani Ports fell by 3%. Today, the share price of Adani Power fell by 5%. The share price of Adani Green has also fallen by 3%. He claimed that the uproar in parliament over Adani group companies is the primary reason for the drop in Adani group equities.
Today’s Sensex and Nifty
Key benchmark indices are expected to fall further, Choice Broking’s Executive Director, Sumeet Bagadia, stated, “Today, the Nifty is trading at an immediate support level of 17,000, with a resistance level of 17,300. If the Nifty 50 index falls below 17,000, it may fall as low as 16,800. Similarly, the Sensex today has immediate support at 57,500 and a barrier at 59,525 levels.”
“Nifty Bank index has immediate support set at 39,000 but it is facing resistance at 40,300 level,” Sumeet Bagadia said of the Nifty Bank forecast. According to a Choice Broking specialist, the trend on all important benchmark indexes is sideways to negative on chart pattern.
Following nearly three hours of trading on Tuesday, the Sensex and Nifty were down 0.50 percent, while the Nifty Bank index was down 0.75 percent.
