The stock market fell for the fifth consecutive day on Friday. There has been a sharp decline in the market in the last one week. On Friday, December 13, 2024, i.e. seven days ago, the Nifty closed at the level of 24,768 and today on December 20, 2024, the Nifty closed at the level of 23,627. That is, in the last seven days, the Nifty fell by 1141 points.

The stock market fell so much on Friday that the confidence of investors was shaken. Nifty saw a low of 23,537 on Friday. The benchmark BSE Sensex closed at 78,041 on Friday with a fall of 1,176 points, while the Nifty 50 closed at 23587 with a fall of 364 points.

In today's fall, the market capitalization of all the companies listed on the BSE fell by Rs 10.15 lakh crore to Rs 440.99 lakh crore.
 

FIIs selloff after Fed decision

There was heavy selling pressure in financial and IT stocks in today's market. Investors in the market are cautious after the US Federal Reserve's forecast of cutting interest rates next year and that is why FIIs started selling heavily.

HDFC Bank and Reliance Industries, included in Nifty 50, fell by 1% and 2% respectively and were the biggest losers on the benchmark.

FIIs are selling in heavy volumes after the Fed's decision on rate cut, so the decline in the market did not stop even at major support levels on Friday.
 

Skepticism about corporate earnings

Stocks in Indian markets are already overvalued. In the upcoming quarter results, the earnings of some index heavyweight companies may not be as per expectations. There is concern in the market about earnings growth.

Apart from this, foreign investors are seeing more potential in the Chinese and US markets than in the Indian markets.
 

How will the market trend be?

Stock market experts believe that the market trend has bent and now the market is completely in the control of sellers. This market is coming on the structure of sell on rise. Now even a slight increase will make the sellers dominate the market.

Due to the heavy selling by FIIs, no pullback seems to be effective in the market. On Friday alone, there was such a heavy selling that the market cap of the companies listed on BSE decreased by Rs 10 lakh crore.