Share Market Down: Indian stock markets witnessed weakness for the third consecutive day on Wednesday, January 7. The Sensex fell by more than 300 points during trading. Whereas Nifty fell below 26,100. The stock market sentiment remains weak due to geopolitical tensions and continuous selling by foreign investors. Apart from this, investors also seem cautious due to weak global signals.
Around 12:25 pm, the BSE Sensex was trading 304.91 points or 0.35 per cent lower at 84,783.44. Whereas Nifty had fallen by 89.80 points or 0.34 percent to the level of 26,088.90.
There were 3 main reasons behind today’s decline in the stock market-
1. Increasing geopolitical tension
Rising global geopolitical tensions and new tariff concerns have weakened investors’ risk appetite. According to Ponmudi R, CEO of InReach, the market movement is likely to remain in a limited range due to profit booking at higher levels. He said that in the current market environment, stock and sector based movements can be shown instead of any major trend.
2. Selling by foreign investors
According to exchange data, foreign institutional investors (FIIs) made a net sale of about ₹107.63 crore from the Indian stock market on Tuesday. So far in the month of January, foreign investors have sold about Rs 3,100 crore. Due to continuous withdrawal of foreign investors, there is pressure on liquidity in the market, which is directly impacting the sentiment of investors.
3. Weak global signal
Negative signals were also received from Asian markets today. Japan’s Nikkei 225 and Hong Kong’s Hang Seng index were seen trading with weakness. This environment of caution in the global markets also created pressure on the Indian market.
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