Today's stock market: An explanation of why the Sensex fell 3,000 points in only six days

 Today's stock market: An explanation of why the Sensex fell 3,000 points in only six days

During morning trade today, the Indian stock market continued its losing streak for a sixth consecutive session. Within a few minutes after the stock market's opening bell today, the BSE Sensex hit an intraday low of 63,403 after starting down at 63,774 levels. For the last six days, the 30-stock index has been under sale pressure; during that period, it has dropped from 66,428 levels to 63,403 levels, shedding more than 3,000 points.

For the sixth day in a row, the Nifty 50 began the day down today and lost almost 890 points before hitting an intraday low of 18,920 levels. In a same vein, the Bank Nifty index had a lower opening level today at 42,708 and lost over 2,000 points before reaching an intraday low of 42,371 levels.

Why is today's share market down?

"There is risk-off in global equity markets driven by a combination of economics as well as geopolitics," said V K Vijayakumar, Chief Investment Strategist from Geojit Financial Services, in response to questions on why the share market has been down for the previous six straight days. Markets are still facing significant challenges due to the Israel-Hamas conflict. When the world economy is already experiencing a slump, a protracted war might also have an effect on global growth. Nonetheless, the market's biggest short-term obstacle is the persistently high rates on US bonds. Given that the yield on the 10-year bond is around 5%, FPIs are probably in the sell position. The industries that account for the biggest shares of FPIs' AUM, such as banking and IT, are probably going to face pressure. Long-term investors will be able to take advantage of them to purchase high-quality equities at competitive prices, especially in the banking industry."