Why is Indian stock market falling today — explained with 5 reasons (2024)

FAQs

Why all Indian stocks are falling? ›

Early trends in Lok Sabha Election results

Pointing to disappointing Lok Sabha Election 2024 results, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "This sharp fall in the Indian stock market is mainly due to the disappointing early trends in the Lok Sabha Election results.

A stock market collapse typically occurs when the economy is overheated, inflation is rising, market speculation is rampant, and there is significant uncertainty about the path of an economy.

Conversely, if there are more people who to sell a stock than the number of people who want to buy it, there is a greater supply of the stock than the demand for it in the market. This causes the stock's price to fall. As an investor or trader, understanding supply and demand is easy.

Understanding and Identifying Downtrends

If many traders decide to sell a stock at the same time, it will result in a sharp decline in the stock price. The stock market is sentiment-driven, and fear of a further decline may result in even further selloffs of a stock.

Nuvama Institutional Equities noted that the company's revenue and EBITDA were slightly below expectations due to weaker-than-anticipated performance in its India commercial vehicle (CV) and passenger vehicle (PV) divisions.

Q: Which was the biggest stock market crash in India? A: The 2008 global financial crisis is considered one of the biggest, with the BSE Sensex falling by over 50%.

Do you lose all the money if the stock market crashes? No, a stock market crash only indicates a fall in prices where a majority of investors face losses but do not completely lose all the money. The money is lost only when the positions are sold during or after the crash.

If you are a short-term investor, bank CDs and Treasury securities are a good bet. If you are investing for a longer time period, fixed or indexed annuities or even indexed universal life insurance products can provide better returns than Treasury bonds.

Stock prices have surged significantly over the past 18 months. The S&P 500 is up by 45% since it bottomed out in October 2022, while the tech-heavy Nasdaq has soared by a whopping 58% in that time. Investing now, then, means paying much higher prices than you would if you'd bought a year or two ago.

The Big Money bulls forecast that the Dow Jones Industrial Average will end 2024 at about 41,231, 9% higher than current levels. Market optimists had a mean forecast of 5461 for the S&P 500 and 17,143 for the Nasdaq Composite —up 9% and 10%, respectively, from where the indexes were trading on May 1.

What is driving the stock market? ›

Fundamental factors drive stock prices based on a company's earnings and profitability from producing and selling goods and services. Technical factors relate to a stock's price history in the market pertaining to chart patterns, momentum, and behavioral factors of traders and investors.

Don't lock in losses

So yes, even when the line curve is plummeting, you have not technically lost money. Highs and lows are normal. Historically, the stock market value has increased over time, with an average of 9.90% in annual returns in the S&P 500 index from 1928 to 2023.

9:33 a.m.: Stocks fall after GDP data shows slowing economic growth. Stocks opened lower on Thursday, with equities selling off after fresh gross domestic product data signaled signs of slowing economic growth. The Dow Jones Industrial Average pulled back 500 points, or 1.3%.

The stock market downturn definition refers to a period of time during which the stock market continues to decline. Market downturns may lead to recessions and bearish markets, but stock market downturns do not necessarily lead to market crashes and depressions.

Share price is ultimately determined by supply and demand in the marketplace. The more shares in circulation there are relative to demand for this stock, the lower its price will fall. The more demand there is relative to shares in circulation, the higher its price will climb.

The study undertaken in this paper has provided strong evidence in favor of the inefficient form of the Indian Stock Market. The series of stock indices in the Indian Stock Market are found to be biased random time series and the random walk model can't be applied in the Indian Stock Market.

Foreign stock traders and real estate buyers face numerous hurdles when investing in India. In fact, you can't even legally purchase India property as a foreigner. You must either have status as an Indian citizen or PIO (Person of Indian Origin) to own freehold land.