Why Did Stock Market Fall Today?

Falling Stock market
by Nikita Bhoota 28/07/2021

Considering the global cues, Dalal Street is facing a huge sell-off in today’s trade. Huge selling is seen in banking, financial, pharma, auto and IT stocks.

Sectoral Indices at glance:
 

Indices

(%)Change

Nifty Bank

-0.76

Nifty Auto

-0.93

Nifty Fin Service

-0.51

Nifty FMCG

0.00

Nifty IT

0.21

Nifty Media

-0.25

Nifty Metal

1.22

Nifty Pharma

-0.38

Nifty PSU Bank

-1.88

Nifty Pvt Bank

-0.51

Nifty Realty

-0.79

Source: NSE

Sensex has hit day’s low of 51,803 and day’s high of 52,674. It means Sensex tumbled 871 points today however recovered later and closed at 52,444 down 135 points.

Here, are the reasons for fall the in the stock market.

Weak Asian markets & US markets:

? Asian share markets are trading near seven-month lows. 

? The Japanese ‘Nikkei’ trading down by 450 points as the huge sell-off in the Chinese stocks sees collateral risk-off in other Asian markets. 

? The Hong Kong 'Hang Seng’ has tumbled over 2500 points in 3 days which signifies a loss in one market may result in foreign investors dump stocks in other markets.

? US stocks also corrected sharply with global cues as Nasdaq fell over 2% before recovering to close down 180 points.

 

Quarterly results in focus:

The following companies are going to announce their quarterly performance today.
Maruti Suzuki India, Nestle India, ABB India, Astec Lifesciences, Birlasoft, Central Bank of India, Century Textiles & Industries, Coforge, Dhanlaxmi Bank, Embassy Office Parks REIT, Gateway Distriparks, Geojit Financial Services, Greenpanel Industries, Grindwell Norton, Happiest Minds Technologies, Heritage Foods, HSIL, ICRA, IDBI Bank, Intellect Design Arena, JM Financial, Mahindra Lifespace Developers, Mahanagar Gas, Mold-Tek Packaging, Pfizer, Radico Khaitan, Ramco Systems, Route Mobile, RPG Life Sciences, Sagar Cements, SRF, Tata Coffee, TCI Express, TeamLease Services, United Breweries, UTI Asset Management Company, and Welspun India.

Rise in India VIX:

India VIX, volatility index, jumped 3.4% to 13.69 levels as the Sensex, Nifty 50 fell. India VIX has hit high of 15.98 and low of 11.35 today.

IMF cuts India’s GDP Forecast:

Due to the impact of the Covid second wave, the International Monetary Fund (IMF) cut India's growth projection from 12.5% to 9.5% for fiscal 2021-22.

FII flow trends:

FIIs net sold shares of Rs 1,459.08 crore, whereas DIIs net purchased shares of Rs 729.96 crore in the Indian equity market on July 27, as per provisional data available on the NSE.

F&O expiry & US Fed meet:

F&O expiry and US Fed meet and will be in focus as high volatility can be seen in the stock market.

 

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