In just seven trading sessions, the Sensex lost 176 points today, wiping away investor wealth worth Rs 9.25 lakh crore. Here are 10 factors troubling investors on Dalal Street:
1) Global markets As global markets continue to experience bearish sentiments, Indian markets are reflecting those sentiments as well. In its fourth straight weekly decline, the Dow Jones declined 3% last week.
Asian markets were under pressure this morning, with Nikkei down 0.11%, Hang Seng lost 0.33% and Australia's S&P/ASX 200 shed 1.12%.
2) Fed fear Market watchers now fear that the Federal Reserve will hike interest rates over the next three meetings as a result of renewed inflation spikes in the US. Fed's preferred inflation gauge, the PCE price index, rose 0.6% last month after gaining 0.2% in December.
3) FII selling Foreign institutional investors have dumped Indian stocks worth more than Rs 31,000 crore so far in 2023. Data from F&O showed that FII net shorts in index futures increased again to over 1 lakh contracts.
4) Adani stocks The relentless selling pressure in Adani stocks is also dragging down the equity market. During the day, Adani's combined market capitalization fell below Rs 7 lakh crore following the Hindenburg report's allegations.
5) El Nino There is further concern about food inflation and a drop in rural incomes because of the prediction of a heat wave in March ahead of the Rabi harvest, analysts said.