MARKET OVERVIEW :

Currency Market Overview April 15, 2024

Markets sink due to war clouds- Gold and Oil surge ! Stock market crash today: Why is India stock market down today? Explained with 5 reasons:

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Stock market today: The Indian indices witnessed sharp selling pressure in early morning deals after escalation in the Israel-Iran war, say experts

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Stock market crash: Rising US dollar and Treasury yields, FIIs selling, falling Indian National Rupee (INR), and rising crude oil prices are some other reasons that have fueled the selling pressure in the Indian stock market

Stock market crash today: On account of the Israel-Iran war escalating tension in the Middle-East region, rising US dollar rates and the US Treasury yield, FIIs’ selling, etc., the Indian stock market extended its selling pattern for the second straight session on Monday. The Nifty 50 index opened lower at 22,339 level and went on to touch an intraday low of 22,264 mark, losing over 1 percent within a few minutes of the opening bell. The BSE Sensex lost over 800 points and hit an intraday low of 73,727 mark during the early morning session.

Stock market crash today

In the last two sessions, the Nifty 50  index has crashed over 400 points, the BSE Sensex has lost over 1300 points whereas the Bank Nifty index has nosedived over 1,000 points. In the broad market, the small-cap index has crashed over 2 percent whereas the mid-cap index has lost to the tune of 1.50 percent since Friday last week.

 

Why share market is down today?

On why the Indian stock market is down today, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Escalating tension in the Middle East due to the Israel-Iran war is the major reason for the fall in the Indian markets. However, there are some other reasons like rising US dollar and Treasury yields, FIIs selling, falling Indian National Rupee (INR), and rising crude oil prices that have fueled the selling pressure in the Indian stock market.”

Experts listed out the following the following 5 major reasons for fall in the Indian stock market:

1] Iran-Israel war: “Tension in the Middle East is the major reason for selling in the Indian equity market as this has put doubts regarding the geo-political uncertainty in the region,” said Avinash Gorakshkar.

2] Weak global market: “After escalation in the Middle East, selling has taken place across the global bourses. The US stock market ended lower on Friday. In the early morning session on Monday, major Asian markets like Nikkei, Hang Seng, Kospi, etc., are trading under pressure,” said Sandeep Pandey, Founder of Basav Capital.

3] Rise in US dollar rates: “US dollar is  continuously rising and the US dollar index has come close to 106 levels and the US dollar rate has touched 34-year high against the Japanese Yen. This has spurt the US Treasury yields that has spurt selling in global equity market, which includes the Indian stock market,” said Avinash Gorakshkar of Profitmart Securities.

4] Soaring crude oil prices: “Crude oil prices have surged to the six-month high in domestic and international markets. The fuel prices have risen to the tune of 6 percent in March 2024 whereas, in April 2024, it has surged more than 3 percent till date,” said Anuj Gupta, Head of Commodities & Currency at HDFC Securities.

“Soaring crude oil prices are not a good sign for the global economy as it is expected to put pressure on the local currency and inflation,” said an analyst.

5] FIIs’ selling: “Due to the geopolitical uncertainty and rising US dollar rates, FIIs are fishing out money from the Indian stock market. On Friday, they sold out Indian stocks worth ₹8,027 crore in the cash segment whereas they sold out around ₹2,000 worth of shares in the F&O segment,”

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