Market Today
Indian Stock Market Volatility Index, India Vix closed at highest level after 7 August 2024 and Indian market has continued to fall. NSE index Nifty 50 closed below 23000 mark after today’s trading session and BSE Sensex also crashed more than 800 points today and there are multiple factors behind this fall.
Today before the market opening Gift Nifty was indicating that Nifty 50 will open in below 23000. After opening at 22940 with loss of more than 150 points, once we crossed 23000 mark and created high of 23007 but sellers started dominating on buyers and market continued to fall and Index closed with the loss of 263 points at 22829.
All major sectorial indices of NSE closed in red sign. Nifty IT, Media, Metals and pharma indices lost 3-4 percent in a trading session. Nifty Bank, Auto, FMCG and realty indices declined by nearly one percent.
In Nifty 50 index 42 stocks closed in red and only 8 stocks closed with gain. Top gainer in Nifty 50 index was Britannia. Britannia advanced 1.5% today and closed at 5178.05 on NSE.ICICI Bank and M&M were also closed in green today with gain of more than 1 percent. HCL Tech from IT segment closed with down tick of 4.59 percent today at 1710.1, was the top loser in Nifty 50 index. Tech Mahindra and Wipro also lost more than 4 percent of its market cap in a day.
India Vix
Indian stock Market volatility Index India Vix closed it’s 5 month high after august 2024 and it is showing that everyone is in mood of selling. India Vix closed on Friday at 16.75 but today it closed above 18 with gain of more than 8 percent. Increasing in India Vix is showing the sign of caution due to many events have lined up in next week so investors/traders are lightening their positions.
Today was one of the worst day for broader market because there was 1:10 advance Decline ratio. 1:10 advance decline ratio means that there was 1 stock closed in green and 10 stocks closed in red sign.
Upcoming Events
There are multiple events lined up in upcoming days and next month.
1. Us Fed Policies will come on 28/29 January.
2. Indian Union Budget will announce on Saturday 1st February.(Market remains open for trading on saturday).
3. There is election in the state of Delhi in next week on Wednesday 5 February and the results of this elections will be declared on Saturday, 8 February.
4. Policies of RBI is expected to release on Friday 7 February in next week.
Five major reasons of Fall
1. Weak Q3 Results
Companies are releasing weak Q3 results and updates so this is one of the factors that dampening the investors risk. Many sectors are showing slower recovery than expected. Lower growth guidance in many companies is also a factor that brought the selloff in the stocks.
2. Foreign Outflow
Foreign Institutional Investors(FIIs) have been selling Indian equity shares from October last year. They are continuing relentless selling of Indian stocks.
3. Indian Union Budget
Union Budget of India will come on 1st February 2025. Investors are focused on the Budget, 2025. It is expected that Government will try to balance fiscal prudence with measures to boost consumption. Lower growth guidance may trigger further selloff in the Indian stock market.
4. Donald Trump factor
Global stock markets are closely monitoring the tariff policies of United States of America President Donald Trump because after imposing the tariffs on Mexico and Canada, Donald Trump threatened a 25 percent tariff on Columbia.
5. Fed Policies meet
US Federal meeting is scheduled on 28-29 January. Many experts believe that no rate cut will come in this meet and same rate will continue.
