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why indian stock market is falling 20th March 2024
- Stress test advice from sebi chairman because people invested more in small & mid caps.
- US interest rate rate cut decision on 20th march 2024 maybe on due to slightly higher inflation in US.
- March 2024 tax harvesting by selling loss stocks.
- TATA sons IPO news…
also check live market news by livemint, cnx, moneycontrol etc.
14th july 2023: cooling inflation caused hike in nifty it by 5% each nitfy & Sensex gained 2% high. my portfolio 24% in IT and 23.66% in financials, 12% health 9.32% in fmcg.
26th& 27th june: stock market up reasons:
Oil prices dip after unexpected rise in US crude stocks Lower oil prices leads to stock market jump.
The global market exhibited a negative bias as concerns regarding economic growth emerged in light of the political instability in Russia. This instability led to an increase in oil prices, driven by worries over potential supply disruptions, given Russia’s status as one of the largest oil producers.
US inflation rate hike fear over,
22nd june 2023: nitfy fall 0.40% drops due to profit booking global asian markets also red my portfolio dropped by 70%
23rd june 2023: 11.03 AM
NIFTY 50 18688.85 -82.40 (-0.44%)
SENSEX 63060.00 -178.89 (-0.28%)
maybe continued profit booking, no macro global economy situations. US fed rate hike..
why nifty is falling today 23rd june 2023
Asian stocks dropped in the early trade, spooked by fears of interest rate hikes by the US Fed.
Oil prices down 3% this week
Sources:
ET Times: Sensex live updates
https://economictimes.indiatimes.com/indices/sensex_30_companies
https://economictimes.indiatimes.com/topic/why-stock-market-is-rising-today
https://www.cnbctv18.com/market-live/
oil Price impact on indian stock market
When crude oil prices fall, transportation costs fall and vice versa. A fall in logistics cost lowers their final price and raises demand for goods. This, in turn, raises the stock price.
For every US $10 increase in the cost of oil, the current account deficit increases by 0.55%. This is because oil accounts for a large portion of India’s total imports. Whenever the current account deficit increases, foreign exchange starts flowing out of the country. This leads to the depreciation of the rupee
Factors that affect the Indian share market
1. RBI’s monetary policy and interest rates
2. Union Budget
3. Inflation
4. Financial results of companies
5. Government policy
6. Investment through FDI and FPI policy
7. Exchange rate
If the rupee depreciates steadily over time and the share markets give good returns,.
8. Political stability
Stock markets prefer a government with a clear majority that can undertake bold reforms for economic development.
9. Natural disasters and pandemics
Stock markets react adversely to natural disasters .
10. Commodity prices – input costs
India imports many commodities such as crude oil, natural gas, copper, aluminium, etc. Any sharp increase in the prices of these commodities increases the input costs for companies. It reduces their margins and affects their profitability adversely, t If crude oil prices go up substantially, it increases inflation, resulting in the RBI increasing interest rates. This too impacts the share market adversely.
