Share Market Update: Outcry in the stock market, the entire market sank due to these 5 reasons - Newztezz Online

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Tuesday, March 19, 2024

Share Market Update: Outcry in the stock market, the entire market sank due to these 5 reasons


Stock Market Today:
The period of decline in the stock market continues. On Tuesday, both BSE Sensex and NSE Nifty closed with a big fall. After all, what was the reason for this outcry in the market? Let us explain to you 5 big reasons...

This is a period of decline in the stock market, the stock market can be seen falling for the last several days. While BSE Sensex closed with a fall of more than 700 points, NSE Nifty also saw a fall of almost 250 points. After all, what is the reason that the stock markets are falling and why has the market fallen especially today? Let us understand…

The Nifty 50 index of the National Stock Exchange fell 238.25 points on Tuesday and closed at 21,817.45 points. Whereas the 30-share Sensex of Bombay Stock Exchange fell by 736.37 points and closed at 72,012.05 points. During trading during the day, Nifty touched a high of 21,978.30 points and Sensex touched a high of 72,490.09 points.

Stock market fell due to these 5 reasons

There has been a continuous decline in the stock market for many days. But there are 5 main reasons for the softness seen on Tuesday…

Japan has broken its 17 year old record. The central bank there, 'Bank of Japan', has changed its stance on negative interest rates. Due to this, the situation is bad in the markets all over the world, but it has had a lot of impact on the Asian markets. Because of this, selling pressure can be seen in these markets. In Japan's monetary policy, the short-term minimum interest rate was till now kept at -0.10 percent, which has now been decided to be increased from 0 to 0.10 percent.

Meanwhile, pressure is being seen on the market due to another big reason. That is the meeting of the US Federal Reserve. The market was expecting the Federal Reserve to cut interest rates, but last week's inflation data in America has changed this situation. In such a situation, now the market is eagerly waiting for the next monetary policy of the US Federal Reserve.

The month of March is the month of income tax planning. In this month, most of the investors book their profits on shares before 31st March and set them off from their losses. Its effect is that selling in the market increases. Later these shareholders buy back all their shares in the month of April. That's why there is a period of decline in the market.

The Bank of Japan has changed the negative trend of interest rates, this has affected Japan's Nikkei as well as big Asian markets like Hong Kong and Shanghai. Its effect is also visible on the domestic market.

If we look at the expansion of the market at this time, there is a weakening trend in the broad portfolio. Last month a decline has been seen in the mid-cap index, this month the small cap index is soft due to the action of SEBI. Because of this there is a period of decline in the market.

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