The market has become a market! The Sensex slipped by 636 points, the Nifty slipped; Learn why the market broken
The domestic stock market disappointed investors on Tuesday. The BSE Sensex fell by 636 points to fall 636.24 points at the end of 80,737 at the end of the trading. Similarly, NSE Nifty fell at the level of 24,542.50 with a decline of 174.1 points. The Nifty Bank also weakened 303.45 points and closed at 55,599.95 level. Coal India, Apollo Hospitals, Bajaj Finance, Hindustan Unilever and Maruti Suzuki India declined by 2 percent.
Investors are cautious amid weak global signals
According to the news, indices declined in early trade on Tuesday amid weak global signals, rising crude oil prices and continuous withdrawal of foreign funds. Investors were cautious before geopolitical tension and important results of RBI MPC.
But these shares saw a boom
The early monsoon progressed helped improve the approach to agriculture -related business, leading to a bounce in fertilizer shares. Shipyard companies also saw strong purchases, with an increase of about 6% in each of the Cochin Shipyard and Garden Reach Shipbuilders. Realty stocks rose, leading to an increase of 1% in the Nifty Realty Index.
Why the decline in the market after all
Concerns about the high valuation of the Indian stock market are increasing. The current value of Nifty 50-to-I (PE) ratio is above its one year average PE. In addition, America’s uncertain trade policy is making investors alert worldwide. The market believes that there is no certainty about Trump’s tariff policies, which will keep increasing concerns. Also, foreign portfolio investors (FPIs) have sold Indian shares worth about Rs 9,000 crore in the last two sessions, amidst the increase in American bond yields and high evaluation of Indian equity.
Due to the weak results of the fourth quarter and tariff uncertainty on the market, the domestic market lacks new positive signals, which is being seen on the market. One of the most latest reason has seen new intensity in the Russian-Ukraine War following the recent attacks by Ukraine at military airports in the interiors of Russia.
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