The losses for the Indian stock began to widening up, right after opening up in the new trading session on Friday after extending their rally for three consecutive days in a row. Following this logic the BSE index opened up with a slight dip at 77069 and after facing extreme selling pressure it bottomed out at 76263 all this while having previously maxed out at 77042 today. On the other hand, the Nifty 50 Index opened up at a price of 23277 but after losing more than 200 points plummeted down to its day low of 23102.

Why Did We Face This Massive Fall?

Looking at the general consensus experts in this field came to the conclusion that, Investors were worried about the US Economy which resulted in them selling out along with the overseas investors and on top of that the earnings of the company for the 3rd Quarter, but on the other hand it’s not just a single factor.

1. US Economy Faced Uncertainty

The market was sent into a down belief after seeing President Trump ‘s economic shifting plans for his 2nd term. His ways of protectionism along with his ‘America First’ policies would definitely act as a setback for Asia.

2. Increased Purchasing Power Of US Dollar And Escalation In Bond Yields:

The Indian market has started experiencing a slowdown as a result of Indian investors moving their assets to the US currency and bond markets due to the strengthening of the dollar and increased bond yields. This is further supplemented by Nicolits and three and four explaining the dollar to bond shift.

3. Pressure Exerted By FIIs Selling:

Foreign Institutional Investors, in the Indian markets have been operative and are selling due to the lucrative opportunities presented by the US bond and currency markets, as a results these changes have further fueled Dalal streets outflows and indirectly compounded the struggle with the stock prices.

4. Rate Cut Above American Fed Standing And Further Issues:

Innen the announcement of the American Federal reserve cut, all memecaios posted on social media have led to increased volatility within the international markets and worsened understanding.