Market Mayhem: Key Reasons Behind Dalal Street's Recent Dramatic Drop
By: G R Mukesh | October 03, 2024
Indian headline indices Sensex on Thursday (October 3) fell by 1,361 points (1.62%) to 82,905.09, while the Nifty 50 dropped by 413.95 points (1.60%) to 25,382.95.
Amid ongoing global and domestic pressures, here are some reasons for the fall:
The primary factor contributing to the market in red is the escalating tensions between Iran and Israel, with missile attacks and retaliations, heightened fears of a larger conflict, impacting global market sentiment.
Another factor contributing to it is the market regulator SEBI's tighter regulations for derivatives trading, increasing costs for investors.
Furthermore, rising crude oil prices, fueled by Middle Eastern conflict concerns, raised worries for India's import costs, pressuring sectors like oil and energy.
Foreign investors sold off Rs 5,579.35 crore in Indian equities, adding to the market downturn, while domestic investors provided limited support.
The Nifty index has been on a bearish trend for three days, with falling open interest signalling a squaring off of long positions.