Stock market today: After witnessing a relief rally on strong global market sentiments, the Indian stock market came under sell-off pressure during early morning deals on Wednesday. The Nifty 50 index opened lower at 24,371 and touched an intraday low of 24,337 within a few minutes of the Opening Bell. The BSE Sensex opened with a downside gap at 80,237 and touched an intraday low of 79,981. However, the 30-stock index son gathered upside momentum and regained the psychological 80,000 mark. The Nifty Bank index opened lower at 51,988 and touched an intraday low of 51,814 immediately after the Opening Bell.
According to stock market experts, the Indian stock market still faces challenges like potential global instability, a hotly contested US election, interest-rate decisions in the US and Europe, the threat of a wider Middle East conflict, domestic economic pressures, and weak quarterly earnings at home. Such factors are expected to haunt the bulls whenever there is some upside movement. They said the Indian indices like Sensex, Nifty 50 and Bank Nifty, etc., are still at premium valuations despite the recent route.
Why is Indian share market falling today?
On reasons that are dragging the Indian stock market today, Ajay Garg, Director and CEO at SMC Global Securities, said, “The stock market’s inherent unpredictability was demonstrated during Samvat 2080, and as we enter Samvat 2081, a cautious outlook remains crucial. Several challenges could weigh on the Indian stock market, such as potential global instability, hotly contested US election, interest-rate decisions in the US and Europe, the threat of a wider Middle East conflict, domestic economic pressures and weak quarterly earnings at home.”
The SMC Global Securities expert said such factors may heighten market volatility and dampen sentiment. However, it’s important to consider India’s strong long-term growth prospects.”
‘Sell India Buy China’ narrative
Pointing towards the ‘Sell India Buy China’ narrative in the market, Ajay Garg of SMC Global Securities, said, “Foreign Institutional Investors (FIIs) have been steadily divesting from the Indian stock market, driven by a confluence of domestic and global factors. October witnessed a record-breaking outflow, surpassing even the peak of the March 2020 market crash. The “sell India, buy China” narrative has been amplified by Beijing’s recent policy initiatives to revitalise its domestic economy. These measures, particularly the more-than-expected monetary easing, have ignited a significant rally in the Chinese stock market, attracting substantial investor interest.”
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
