Why did Stock market crash today? Check 6 reasons HERE
Heavy selling in both Sensex and Nifty
Heavy selling pressure caused a significant drop in both the Sensex and Nifty indices on Monday, the start of the trading week
All sectoral indices in the red
All sectoral indices are trading lower. Nifty PSU Bank Index fell 3.35%, Nifty Metal Index 2.66%, and Auto Index 1.68%. Let's explore the main reasons for the market decline
Reason #1: HMPV Virus
Three cases of HMPV have been reported in India so far, two in Bengaluru and one in Gujarat. News of the rapid spread of the Human Metapneumovirus has unnerved the stock market
Reason #2: Q3 Results Anticipation
Investors are currently awaiting results of third quarter (October-December) and are exercising caution. New investments are expected after major companies announce their results
Reason #3: Global Market Weakness
The weakness in global markets has impacted Indian markets, with Asian stock markets falling by up to 1.4%
Reason #4: Strong US Dollar & Bond Yields
The strengthening US dollar and high bond yields are also putting pressure on Indian stock markets
Reason #5: Crude Oil Price Surge
The surge in crude oil prices is adding pressure to global markets. Crude oil prices are at their highest level since October 2024
Reason #6: Foreign Investors Selling
Foreign investors engaged in heavy selling on Monday, January 6th, which contributed to the market decline. These investors have sold ₹4285 crore worth of shares in January 2025