The bear roared over Bull
The Indian stock market felled drastically on Friday. The Sensex closed down over 500 points at 31,327, closing the week about 1% lower while Nifty ended 1.71% lower at 9,154. The biggest Nifty losers were SBI and Tata Motors (NSE -1.92 %). Global markets were also very low as investors are uncertain about the COVID-19 treatment.
Top factors which affected the market mood and triggered the fall are as follows:
US POLITICAL DILEMMA
US political dilemma is affecting the equity market all across the globe including India. US lawmakers launched a formal impeachment inquiry into President Donald Trump, accusing him of seeking foreign help to damage the reputation of Democratic rival Joe Biden ahead of next year’s presidential election. And this bicker is costing the world’s economy.
PROFIT TAKING BY TRADERS
During these uncertain circumstances, traders are liquidating their holdings to cash out the profits that they have created. And according to experts, Stocks traded near peak valuations and sustainability are essential for equilibrium in the economy. Investors need to closely monitor market movement in the coming sessions, as volatility may remain high.
BREAKING TRADE DEAL BETWEEN US AND CHINA
The entire world has witnessed the trade war between the US and China. After that, Mr.Trump criticized the trade policies of China adding that he will not accept a ‘bad deal’ in the trade negotiations. In return, China warned the US to respect its sovereignty.
Asian Development Bank is struggling in Asia and is blaming the US-China trade war for the slowdown. ADB sharply cut its growth estimate for India to 6.5 per cent from 7 per cent. ADB, however, maintained India’s 7.2 per cent growth projection for next year.
The trends in the stock market remained unsettled last week. And according to experts, there is a possibility of more such choppy movements, with minor weakness in Nifty over the next couple of sessions.