Sensex tumbles 500 points again. Why is the stock market down today?
India TodayBenchmark stock market indices continued their weak run on Friday and are set to end the week on a negative note. Today’s weakness on Dalal Street comes despite strong gains high-weightage IT stocks, which rose after Tata Consultancy Services’ Q3 results beat market expectations. With that said, here are three reasons why the stock market is falling today: Q3 EARNINGS WORRIES Even as TCS opened the Q3 earnings season on a positive note, the broader sentiment surrounding the third quarter results remains negative. Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Since the results season has started the market will witness lots of stock-specific action in response to the results.” ANXIETY OVER DONALD TRUMP’S ACTIONS Another major factor behind the nervousness among investors is growing anxiety over Donald Trump’s likely actions when he takes charge as US President. Prashanth Tapse, Senior VP, Mehta Equities Ltd, said, “Uncertainty around US Federal Reserve rate plans and President-elect Trump's policies continues to fuel market pessimism.” Vijayakumar also agreed and said, “In the context of the looming uncertainty regarding President Trump’s likely actions, the market is unlikely to rally in the near-term.” CONTINUED FII SELLING Last but not least, sustained selling by foreign institutional investors has kept the mood tense on Dalal Street.