Share Market: Good news comes amidst the continuous decline in the market, when will the Sensex, which has fallen by 5000 points, rise?
Sensex and Nifty Fall: After the announcement of the financial package by China in the past few days, the markets there are currently booming. But will this trend continue for a long time in the Chinese market and when will the Indian market recover?
Share Market Update: The Indian stock market has been witnessing a continuous decline for the last three days. The Sensex, which reached close to 86000 points in the last week of September, fell to close near 81000 on Thursday. The decline in the stock market is linked to the selling by FIIs amid rising tensions between Iran and Israel. There is an atmosphere of fear among investors due to rising tensions between the two countries. India has trade relations with both the countries. In such a situation, if a war-like situation arises, then to avoid any major loss, FIIs are withdrawing money and focusing on safe investments.
Money is being withdrawn from India and invested in China
In a note, Macquarie said that investors are confused at this time. It is becoming 'difficult' to choose between India
and China. They analyzed the positive and negative aspects of both the markets. It said that the financial package announced by China can attract investors. It is likely that more such announcements can boost the Chinese stock market. But in the long term, India will dominate.
The market is facing three 'negative' conditions.
The Australian brokerage company also said that the Indian stock market is currently facing three 'negative' conditions. These include weak economic growth and high valuation. A note from Macquarie said that the Indian markets have seen a good boom in the last few months due to the increased investment of DII, but this is contrary to the expectation of high returns on every stock. This decline in the stock market is coming due to the continuous withdrawal of money from the market by foreign investors.
The condition of the stock market:
On Thursday evening, the BSE Sensex fell by 495 points and the NSE Nifty closed with a fall of 221 points. The biggest fall was seen in the shares of realty, auto, FMCG companies. The BSE benchmark index Sensex, based on 30 shares, fell by 494.75 points and closed at 81,006.61 points. At one point during trading, it slipped to 595.72 points. The National Stock Exchange's Nifty index closed at 24,749.85 with a fall of 221.45 points.