Stock Market Crash: Nifty 50 falls below 24K, Sensex stays at 1200 points — 5 reasons why Indian stock market fell today

Stock market crash: Following weak global market trends following rising tensions Russia-Ukraine war And Israel-Hezbollah warIndian markets closed lower on Thursday, November 28, after experiencing some decline in the previous session. Pressure from the IT sector and heavyweight stocks such as Reliance Industries and HDFC Bank dragged the leading indices lower.

Although Adani Group shares provided some support, it was not enough to push the indices into positive territory.

Amid weak global signals and a sell-off in IT stocks, Nifty 50 ended the session with a sharp decline of 1.49% and closed below the psychological 24,000 level at 23,914 points. Similarly, Sensex also registered a significant decline of 1.48% and settled below the 80,000 level at 79,043 points.

On the other hand, the general market managed to overcome today’s sales as Nifty Midcap 100 and Nifty Smallcap 100 closed the session flat.

Accordingly exchange According to experts, the Indian stock market fell today after trading at the range limit for nearly three sessions. They said DIIs are under surveillance in the absence of major international triggers in the wake of the closed US stock market and the upcoming Indian Union Budget 2025. Rising tensions in the Russia-Ukraine war and the Israel-Hezbollah war following Israel’s airstrikes on the Iran-backed militant group Hezbollah, strong US dollar and diminishing geopolitical triggers are some of the major reasons dragging down the Indian stock market. Today.

However, they argued that if the Nifty 50 index manages to close above the critical 24,050 level, the current crash in the stock market can only be termed as profit booking.

Below are some of the main reasons analysts attribute to today’s sharp decline:

Why is the Indian stock market falling?

1) Stock market holiday in the USA: “Indian stock market rose yesterday due to rising US stock market. However, today there are deficiencies in global signals in the American market due to the stock market holiday. “This could be the possible reason that triggered profit booking in the Indian stock market despite the gap widening at the Opening Bell,” said Mahesh M Ojha, Research AVP, Hensex Securities.

2) Israel-Hezbollah war: “The market faces uncertainty as news of Israel defying the ceasefire with Hezbollah and striking Iran-backed militant group Hezbollah for stockpiling medium-range rockets in southern Lebanon increases geopolitical tensions in the Middle East,” said the Hensex Securities analyst.

3) Union Budget 2024: Regarding DIIs’ lack of buying in the current Indian stock market, Mahesh M Ojha said: “DIIs are waiting for the final sign from the Indian government after their victory in the Maharashtra Assembly Elections. They are in a Catch-22 situation as the Union Budget 2024 is just two months away and hence the current “They are not listed on the Indian stock exchange.”

4) Strong US dollar: Anshul Jain, Head of Research at Lakshimishree Investment and Securities, pointed out the increasing US dollar exchange rates and said, “As US dollar prices are constantly rising, investors are shifting money from gold and stocks to bonds and forex markets. This is also a reason why FIIs are constantly selling in the Indian stock market.”

5) Escalation of the Russia-Ukraine war: “Reports of escalation in the Russia-Ukraine war have made traders nervous about moving their long positions,” said Devarsh Vakil, Vice President, Retail Research, HDFC Securities.

Stock market view

Speaking about the outlook for the Indian stock market after this decline, Sumeet Bagadia, Executive Director, Choice Broking, said: “The outlook for the Indian stock market has weakened with the Nifty 50 index breaking below the critical 24,000 level. The 50 stock index currently has immediate support at 23,800 and the front-line index is behind this immediate support.” “If it breaks below, it may drop to 23,500.”

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We advise investors to consult certified experts before making any investment decisions.