After showing some signs of recovery in last 3 days, the indian stock market again took U-Turn. Today the stock market was in Red since the opening hours. By the time of closing the stock market was down by 423 points. During the day trading, the indices fell more than 800 points, before recovering during the closing hours.
(sourced from my trading app)
It was a surprise turn of event that may leave many investors unhappy. Last 3 days the market seems to be recovery mode, with many stock were in Green. But the downtrend movement on the last day of week always dampen the investor spirit. So what causes the market to fall? Here are few reason that causes the market to another collapse.
Weak Performance in IT and Banking Sectors
The Nifty IT index fell 2.46%, with Infosys (-5.8%) and LTIMindtree (-3.4%) leading the decline after Infosys lowered its FY25 revenue growth guidance to 4.5-5%.
Banking stocks struggled, with Axis Bank (-6%) reporting higher fresh slippages of Rs. 5,432 crore in Q3FY25.
FII Selling Pressure
Foreign Institutional Investors (FIIs) sold Rs. 4,341.95 crore in Indian equities on January 16. Their total outflows for January 2025 stand at Rs. 40,055 crore.
Global Market Weakness
U.S. markets closed lower as strong consumer spending and labor market data raised concerns about slower interest rate cuts.
Rupee Depreciation
The Indian rupee weakened to 86.58 against the U.S. dollar, compared to 86.55 in the previous session, adding to investor concerns.
Technical Levels in Focus
Nifty is trading in a range of 23,000-23,400. Analysts suggest a breakout above 23,400 may push the index to 23,800, while a fall below 23,000 could test support at 22,800.
All these factors played a key role in shaking the market. This is why it is said that stock market always plays with investor sentiments.
When markets are rising, people eagerly wait for a correction to buy. But when a correction happens, fear sets in, and no one takes action. This is when the margin of safety improves!
Bad Sentiment = Attractive Prices
"Time in the market is more important than timing the market."
In Good faith - Peace!!
Posted Using INLEO
