Share market crash : Sharp decline in Indian stock market.

Sensex and Nifty closed today with a sharp fall of about 1.5%. BSE Sensex fell over 1,000 points. And Nifty went below the psychological level of 22,000. Weak results of the fourth quarter, Lok Sabha elections taking place in the country, and increase in the price of crude oil, due to which selling intensified in the market today.

Indian stock market (Business Today)

Sensex and Nifty closed today with a sharp fall of about 1.5%. BSE Sensex fell over 1,000 points. And Nifty went below the psychological level of 22,000. Weak results of the fourth quarter, Lok Sabha elections taking place in the country, and increase in the price of crude oil, due to which selling intensified in the market today.

Vice president of SMC Global Securities Saurabh Jain said, "There are some reason that are dragging Indian indices together. Continuous selling by FII's, ongoing loksabha polls, Weak results of the fourth quarter, Hawkish US Fed, and rising VIX India index can be attributed as one of the major reason weighing on the Indian stock market.

Why stock market fell today? Top % reasons

1. Loksabha Election

"The Indian stock market has already discounted the victory of BJP-NDA in the ongoing loksabha polls. Now Indian stocks are in overbought condition hence premature profit booking has triggered on the Indian stock market. The selling is visible in the largecaps only. We are seeing bottom fishing in the smallcap & midcap indices." said Avinash Gorakshkar of Profitmart Securities.

2. Rising VIX Index

"The continuous rise in the VIX Index has also put doubt among the fresh buyers. As India VIX index has a history of climbing during loksabha election and we are just in the middle of Loksabha election 2024. volatility is expected to pick up further as we come close to the result date." said Avinash Gorakshkar of Profitmart Securities.

3. FIIs' Selling 

"FIIs selling heavily this month as they have remained net seller on all season in May 2024. They have sold out Indian stocks worth Rs 15,863 Crore in the cash segment till Thursday while the FIIs sold out stocks worth Rs. 5,292 Crore in the Future & Option segment." said Avinash Gorakshkar of Profitmart Securities.

4. Hawkish US Fed 

Hawkish talks by some US Fed officials recently have put pressure on the indian stock market. Rising Us dollar prices have fueled the US Treasury yield. Investors are expected to switch money from equity to currency markets." said Avinash Gorakshkar of Profitmart Securities.

5. Non-Impressive Q4 Results

"The Market had already discounted the Q4 Results 2024. investors are booking profit now as the season is about to end next week."said Avinash Gorakshkar of Profitmart Securities.

Disclaimer: We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.