Indian Stock Market Decline: Key Reasons
A stronger US dollar, following a revision in US inflation, has pressured global markets, showing its impact on India.
A slowdown in US job openings has added to global market concerns.
The Indian stock market continued its decline for the third session, with Nifty 50 falling below 25,000 and BSE Sensex dropping over 1,250 points in three days.
Key Reasons Behind the Fall:
1. US Fed Meeting Uncertainty: Investors are cautious ahead of the upcoming US Federal Reserve meeting, where a 25 bps interest rate cut is expected. This uncertainty has led to reduced risk-taking.
2. Overbought Market: After a 14-day rally, the Indian market was overbought, leading to profit-booking and a market correction.
3. Rising US Dollar: A stronger US dollar, following a revision in US inflation, has pressured global markets, including India.
4. Weak US Job Data: A slowdown in US job openings has added to global market concerns, affecting sentiment on Dalal Street.
5. US Inflation Fears: Fears of rising US inflation and a limited rate cut have further dampened investor confidence.
These factors have collectively contributed to the market's ongoing decline.
