Why did Sensex, Nifty crash today? 5 reasons why stock market is down
India TodayDomestic stock markets nosedived on Monday, with benchmark indices witnessing sharp losses. Experts have identified multiple reasons behind the market crash, ranging from the detection of Human Metapneumovirus cases in India to weak global cues and ongoing FPI outflows. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The market is likely to be influenced by the negative factors impacting FII flows and some positive domestic factors which can support the market.” WEAK GLOBAL CUES Global economic conditions remain unfavourable, with a high dollar index at 109 and the 10-year US bond yield at 4.62%. Chowdhury noted, “Markets have been under pressure primarily due to weak business updates by companies, especially banks and some FMCG stocks.” FPI SELLING AND RISING DOLLAR Persistent FPI selling and a strengthening dollar have exacerbated the market downturn. Manish Chowdhury, Head of Research at StoxBox, remarked, “Market sentiment may have turned a little sour due to initial HMPV cases found in India, but its impact may be limited as the fatality seems to be lower compared to the Covid virus.” With corporate earnings, the upcoming budget, and global trade policies on the horizon, market volatility is likely to remain elevated in the near term.