Stock Market Today: Why Is Market Down Today? US-India Trade Uncertainty and FII Selling Weigh on Dalal Street
The US-India trade deal, which had been anticipated for a long time, is now in a state of uncertainty, and this is causing Dalal Street to get very anxious during the ongoing FII selling, which is having a huge impact on the markets.
Investors are very anxious as they are speculating about potential tariffs of up to 500% on India. At the same time, the geopolitical situation is changing, and nobody knows what will happen next. Still, there is a glimmer of hope, the market has started to gain some strength by 12:50 p.m., with Sensex rising to 84,295.57 (−665.57, 0.78%) and Nifty to 25,912.25 (−228.50, 0.87%). HDFC Securities’ Devarsh Vakil points out that despite the short-term chart being volatile, the overall direction of the market, with higher tops and higher bottoms trend, suggests that it is quite a resilient market.
Will it bounce back or fall down next? Watching closely!
Sensex And Nifty At 1:03 PM
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Sensex: 84,290.44, down 670.70 points, −0.79%
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Nifty 50: 25,914.95, down 225.80 points, −0.86%
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Time: Data recorded at 1:03 PM
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Trend: Both indices under pressure
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Market Mood: Selling continues amid FII outflows and trade concerns
Sensex and Nifty are under pressure at 1:03 PM, with Sensex down 670.70 points and Nifty falling 225.80 points, reflecting persistent FII selling and US-India trade uncertainty.
Top Reason Why Market Is Down Today
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FII Selling: The foreign institutional investors (FIIs) continued with their selling, and on Wednesday, they sold shares for about ₹1,527.71 crore. This has been the third day in a row of net selling. The total selling by FIIs in January is around ₹5,760 crore, which resulted in persistent downward pressure on the market.
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Weekly Expiry: The Sensex derivatives weekly expiry was able to erupt the usual increased volatility on Thursday. It is during such times that traders either close their positions or move them to the next month. This leads to a sudden change in stock prices and contributes to the overall softness of the market in the short term.
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Weak Global Cues: The Asian stock market was all in red, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng both losing ground. The US stock market also mostly finished lower on Wednesday; thus, the global risk-off mood strengthened, and Indian investors turned out to be more hesitant.
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Crude Oil Prices: Prices of Brent crude rose by 0.4% to USD 60.20 per barrel, thus affecting the oil sector of India, which heavily relies on the import of crude oil. An increase in the price of crude oil impacts Indian companies as they have to incur more costs, creating pressure on the market.
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Trade Deal Concerns: The Nifty 50 index fell by 0.7% during the three sessions and 0.9% for the Sensex after a tweet from US President Donald Trump hinted at more tariffs on Indian products imported through Russia. The market players are still holding back their investments as the long-awaited trade deal between the US and India is still uncertain.
(With Inputs From Experts)
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