Why Indian stock market fell today. Experts list out these reasons
2 min read 14 Mar 2023, 12:52 PM ISTStock market today continue to remain under the bears' control as global cues are still negative on Silicon Valley Bank crisis, believe experts
PremiumStock market today: Following weak global cues on SVB or Silicon Valley Bank crisis, Indian stock market continue to remain lower for fourth straight session on Tuesday. Key benchmark indices down by half to quarter to one per cent by mid session and around three hour session is still left on Tuesday. According to stock market experts, Indian stocks are crashing due to weak global cues after the Silicon Valley Bank news of bankruptcy. They said that weakness in US dollar and Indian National Rupee (INR), uncertainty over the US Fed's FOMC rate hike decision, FIIs selling from the emerging markets are some other reasons that has dragged Dalal Street for fourth straight session.
Silicon Valley Bank crisis
On why Indian stock market is falling, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Global market sentiments have gone bearish after the banking crisis in the US that started by Silicon Valley Bank on Thursday last week. After Silicon Valley Bank, Signature Bank collapse has further damaged the market sentiment that has led to weakness in the US dollar rates and Indian currency. This weakness in the US dollar has triggered selling among the FIIs that is also a reason for weakness in Indian stock market for the last four days."
Avinash Gorakshkar of Profitmart went on to add that market is uncertain about the US Fed's FOMC outcome on rate hike. If the US central bank decides to pause interest rate hike, then we can witness some bounce back in the markets. But, if the US Fed officials continues to talk hawkish on interest rate hike to tame inflation, it would further damage the mood of Indian and global markets.
Weakness in Adani group stocks
Avinash Gorakshkar of Profitmart Securities said that weakness in Adani group stocks is also a reason for Indian stock market's nosedive on Tuesday session. Flagship Adani group stock Adani Enterprises share price today dipped over 7 per cent while Adani Ports share price corrected to the tune of 3 per cent. Adani Power share price today hit 5 per cent lower circuit. Adani Green share price is also down to the tune of 3 per cent. He said that ruckus in parliament over Adani group companies is the major reason for fall in Adani group stocks.
Sensex, Nifty today
Expecting further weakness in key benchmark indices, Sumeet Bagadia, Executive Director at Choice Broking said, "Nifty today is standing at immediate support of 17,000 whereas it is facing hurdle at 17,300 levels. On breaching 17,000 levels, Nifty 50 index may go down towards 16,800 levels. Likewise, Sensex today has immediate support placed at 57,500 while it has hurdle placed at 59,525 levels."
On Nifty Bank outlook, Sumeet Bagadia said, "Nifty Bank index has immediate support placed at 39,000 whereas it is facing resistance at 40,300 mark." The Choice Broking expert said that trend on all key benchmark indices are looking sideways to negative on chart pattern.
After near three hours of trade on Tuesday, Sensex and Nifty was down by 0.50 per cent whereas Nifty Bank index was down to the tune of 0.75 per cent.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
