The BSE Sensex and NSE Nifty were affected by increased concerns over US tariffs and continuous selling by foreign investors.
Sensex, Nifty fall for 5th day
New Delhi: The Indian stock market is witnessing a decline for the fifth consecutive day on Friday. The BSE Sensex and NSE Nifty were affected by increased concerns over US tariffs and continuous selling by foreign investors.
Here are the 5 reasons behind the fall in the Indian stock market.
FII Data: The first major reason for the market decline is the continuous selling by Foreign Institutional Investors (FIIs). On Thursday, FIIs sold shares worth Rs 3,367.12 crore.
This was the fourth session since January 2nd when foreign investors continuously withdrew money from the market.
US Tariff: The second reason is the legal case related to tariffs in the US. Investors are awaiting the US Supreme Court's decision on the validity of tariffs imposed by President Donald Trump.
If these tariffs are declared illegal, the US government may have to return approximately $150 billion to importers.
Tariff Concerns: The third reason is the renewed concern over tariffs. Trump has hinted at increasing tariffs on Indian goods due to India's purchase of Russian crude oil. In the last four sessions, the Sensex has fallen by 1.8 percent and the Nifty by 1.7 percent.
Additionally, Trump has approved a sanctions bill that could impose tariffs of up to 500 percent on countries buying Russian oil.
US Senator Lindsey Graham said that his meeting with Trump at the White House was positive and the President approved this bipartisan Russia sanctions bill.
Crude Oil Prices: The fourth reason is the increase in crude oil prices. Brent crude rose by 0.53 percent to $62.32 per barrel.
Higher oil prices increase India's import bill and inflation risk, putting pressure on the stock market.
Indian Currency Rupee: The fifth reason is the weakening of the rupee. On Friday, the rupee fell 7 paise to 89.97 against the US dollar in early trading.
The rupee opened at 88.88 in the interbank forex market but weakened further later. According to forex traders, concerns over US tariffs and weakness in the domestic market led to continued selling by foreign investors, putting pressure on the rupee.
