Indian Stock Market Faces Sell-Off Pressure Amid Global Uncertainty
The Indian stock market is once again facing sell-off pressure on Friday, following a brief pullback rally on Thursday. The small-cap index is down around one percent, while the mid-cap index has fallen over 1.40 percent. Key benchmark indices such as the Nifty 50 and the BSE Sensex are also in the red, with the Nifty 50 index down 200 points and the BSE Sensex falling by 500 points.
Several factors are contributing to the downward trend in the Indian share market. According to experts, sharp selling in the broad market, weak global cues, selling by foreign institutional investors (FIIs), uncertainty over the upcoming US Federal Reserve meeting, and rising crude oil prices are some of the major reasons behind the market’s decline.
Saurabh Jain, Vice President of Research at SMC Global Securities, highlighted the sharp selling in the broad market as a key factor driving the stock market crash. He also pointed to weak global market sentiments, uncertainty over the US Fed’s interest rate cut decision, FIIs selling, and rising crude oil prices as additional reasons for the market downturn.
The disappointing US Producer Price Index (PPI) data, which showed a 0.6 percent month-on-month increase in February, has further dampened investor sentiment. The upcoming US Federal Reserve meeting has also added to the uncertainty, with investors unsure about the central bank’s rate cut decision.
Foreign institutional investors have been selling heavily in the cash segment, intensifying the selling pressure in the Indian stock market. The recent rise in crude oil prices, coupled with the government’s directive to lower oil prices, is expected to impact inflation in India and the overall economy.
As the market continues to face challenges, investors are advised to seek guidance from certified experts before making any investment decisions. The volatile global economic environment and the various factors affecting the Indian stock market highlight the importance of staying informed and cautious in the current market conditions.
