One other bleak begin for D-Avenue as Sensex, Nifty 50 tank – Firstpost

Buyers within the Indian inventory market noticed no reduction as Dalal Avenue’s benchmark indices opened in crimson but once more on Tuesday (March 4).

The 30-share BSE Sensex opened beneath the 73,000 mark at 72,817.34, down 268.6 factors from the earlier session’s closing.

It hit a low of 72,633.54 in early commerce.

The broader Nifty 50 index opened at 21,974.45, down 144.85 factors.

All 13 main sectors logged losses on the open, whereas the broader small- and mid-caps fell about 1 per cent every.

Why is the market crashing?

A number of elements are contributing to the present market downturn, together with international investor promoting, world financial issues, and a correction in small-cap and mid-cap shares.

One key cause for the sustained promoting by international institutional buyers (FIIs) in India has been excessive market valuations and engaging yields on US bonds, significantly following Trump’s announcement of great coverage shifts.

There’s a perception that Trump’s insurance policies might result in inflation within the US, which can undermine the Federal Reserve’s efforts to manage it. The excessive rates of interest within the US make sure property extra interesting, prompting FIIs to withdraw their investments from Indian equities to reallocate their funds.

Moreover, indicators of a slowdown within the home financial system have alarmed international buyers. India’s gross home product (GDP) declined for 3 consecutive quarters, from This autumn FY24 to Q2 FY25.

Even throughout Q3 FY25, when GDP development reached 6.2 per cent, it was nonetheless the slowest development since This autumn FY23, apart from the earlier quarter (Q2 FY25), when it grew by solely 5.6 per cent.

What occurs subsequent?

“Within the near-term, there aren’t any probabilities of a rebound within the Indian market although valuations are truthful. Buyers ought to stay cautious and wait to see how the situation unfolds,” stated Dr. V Ok Vijayakumar, Chief Funding Strategist, Geojit Monetary Providers.

However Axis Securities’ evaluation differs.

In a report, the broekrage home has identified that “March has traditionally been a powerful month for market recoveries, with a mean acquire of 1.7 per cent since 2009 (excluding the 2023 outlier plunge). The Nifty has by no means recorded six consecutive months of declining costs in historical past, suggesting a possible rebound.”

Extra to return