Sensex fell by more than 1000 points, Nifty broke 300, investors lost Rs 3 lakh crore, know the 5 main reasons for the fall

New Delhi: The stock market is witnessing heavy pressure this week. On Tuesday, for the second consecutive day, the Sensex and Nifty have seen a huge decline. Today, in afternoon trade, the Sensex fell by more than 1000 points, while the Nifty is trading below 24,400. In fact, the US Fed Reserve is going to meet on December 18, in which it is expected that there may be indications of a cut in interest rates. In such a situation, investors have become cautious today. Let us know in detail about the five major reasons behind the heavy selling in the market today.

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Due to this chaos in the stock market, the market cap of all the companies listed on BSE has declined by Rs 2.33 lakh crore, after which it has come down to Rs 257.73 lakh crore.

Panic selling ahead of Fed meeting

Investors have become cautious ahead of the Federal Reserve's policy meeting on Wednesday, which may give some indication of a rate cut by the central bank. Let us tell you that the CME Fedwatch tool is predicting a 97% probability of a 25 basis points rate cut.

Weakness in China's economy

At the same time, the second most important factor is the weakness in China's economy. According to the data released on Monday, the Dragon's consumption in November was much weaker than expected. At the same time, retail sales have increased by only 3%, which is much less than the 4.8% growth in October. While industrial production increased by 5.4% year-on-year.

Strong Dollar

Apart from this, the strong position of the dollar is also affecting the market. The dollar index remains at 106.77, but is maintaining its momentum for a rise of 5% this year. Due to the strong dollar, foreign investors may reduce their interest in the Indian market.

Global Market Trend

Following the decline in global competitors, the Indian stock market also saw a decline today. Actually, traders were ready for the central bank meetings this week. The US Federal Reserve is expected to cut interest rates, while the Bank of Japan is likely to maintain its current stance.