Why Did Market Fall Today? Know Key Reasons Behind Sensex Decline On March 3 – News18
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Stock Market Fall Today: The domestic equity market was highly volatile with the BSE Sensex and NSE Nifty starting the day with significant gains before nosediving by over 1% within half an hour of opening.
Stock Market Today: These 30 stocks of Nifty 500 beaten the most in past six months.
Stock Market Crash: The domestic equity market was highly volatile with the BSE Sensex and NSE Nifty starting the day with significant gains before nosediving by over 1% within half an hour of opening. However, the markets recovered later to finally end the day slightly in the red. The NSE Nifty on Monday closed lower by 5.4 points at 22,119.30, while the BSE Sensex ended the day down by 112.16 points at 73,085.94.
Among the 30 shares of Sensex, 18 shares ended in green.
Reliance, Bajaj Finserv, HDFC Bank, Adani Ports, Maruti Suzuki faced the highest pressure falling up to 2.17 per cent.
However, UltraTech Cement, Bharti Airtel, NTPC, Infosys, and Bajaj Finance ended the day in green rising by 2.21 per cent.
Here is why the stock market fell during the intra-day trade today:
Incessant FII Selling
FII selling has been the prominent reason for the negative sentiments in the market. Their ‘Buy China, Sell India’ strategy is causing sell-offs in the domestic market.
Foreign institutional investors (FIIs) offloaded equities worth Rs 11,639.02 crore on Friday, according to exchange data.
“The main triggers for the sustained FII selling in India have been the high valuations and the attractive US bond yields. These important macros are undergoing a slow shift,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Pressure On Heavy Weight Stocks
Apart from persistent outflow of foreign funds, the market dipped into the red amid heavy selling in bellwether stocks Reliance Industries and HDFC Bank.
Trump Tariffs
The US is set to impose tariffs on Canada and Mexico on Tuesday. Trump’s proposed tariffs from February consisted of a 25% duty on all imports from Mexico and most from Canada (energy products were to have a 10% tariff), along with a new 10% tariff on Chinese goods. Tariffs on Canada and Mexico were delayed for a month, but Trump did enact a new 10% across-the-board tariff on Chinese products.
An additional 10% tariff on Chinese imports remains on the table for Tuesday.
The tariffs imposition has led to a rise in fears of potential trade war globally.
