The Indian stock market is falling for the second consecutive day on October 31. But this is less than the fall of the day before. BSE Sensex opened in the red at 84,379.79 and then fell 392.35 points from the previous closing to reach a low of 84,011.65. NSE Nifty also opened with a fall at 25,863.80 and then fell 135.45 points to a low of 25,742.40. During the day, Sensex saw a high of 84,712.79 and Nifty saw a high of 25,953.75.
On Nifty, except PSU Bank and Oil & Gas, all other sectoral indices are in the red. Analysts say that selling by foreign investors has weakened the market sentiment. A day earlier, the Sensex had settled at 84,404.46, down 592.67 points or 0.70%. Nifty closed at 25,877.85, down 176.05 points or 0.68%.
Today the stock market is falling due to these reasons
1. FII selling
According to stock market data, foreign institutional investors (FIIs) were sellers on Thursday. He sold shares worth a net Rs 3,077.59 crore. On the other hand, domestic institutional investors (DIIs) bought shares worth Rs 2,469.34 crore. Dr. V.K., Chief Investment Strategist of Geojit Investments. Vijayakumar says that fresh selling by FIIs may put pressure on the market in the near future.
2. Weakness of global markets
American markets closed in the negative zone on Thursday. China’s SSE Composite and Hong Kong’s Hang Seng were in loss. However, South Korea’s Kospi and Japan’s Nikkei 225 were in profit. Investors remain cautious as they assess new policy signals from the Federal Reserve and await upcoming economic data for clarity.
3. Lack of clarity on US-China trade agreement
US President Donald Trump has reduced the tariff on China by 10 percent. Now the rate has come down from 57 percent to 47 percent. Trump has said that both the countries have reached a conclusion on many important points on issues like trade and rare earth elements. America has signed a one-year trade agreement with China. But there is still a lack of clarity on the agreement between the two countries.
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