Indian Stock Market Update: Sensex and Nifty 50 Drop Below Key Levels

Indian stock market benchmarks—the Sensex and the Nifty 50—have been in a downtrend for three consecutive weeks now, with the Nifty 50 slipping below the key support level of 25,000. Over the past three weeks, the Sensex has tumbled more than 2,400 points, or nearly 3 per cent, while the Nifty 50 has also declined by around 3 per cent.

On Friday, July 18, the Nifty 50 fell almost 1 per cent to an intraday low of 24,918.65, while the Sensex crashed over 600 points to an intraday low of 81,608.13.

The mid and small-cap segments, which have outperformed benchmarks over the last few sessions, also witnessed a sell-off on Friday; the BSE Midcap and Smallcap indices dropped by almost a per cent each during the session.

Around 2:10 PM, the Sensex was 517 points, or 0.63 per cent, down at 81,743, while the Nifty 50 was trading 147 points, or 0.58 per cent, lower at 24,965.

Why is the Indian stock market falling? Here are five key reasons behind the fall in the Indian stock market:

1. Weak Q1 earnings: The early trends of Q1 results have dashed the hopes of a significant earnings revival this quarter.
2. Elusive India-US trade deal: There is no final deal yet, keeping investors cautious.
3. Stretched valuation: The market's stretched valuation is weighing on market sentiment.
4. Foreign capital outflow: Heavy profit booking by foreign portfolio investors is restricting markets from sustaining gains.
5. Technical factor: Technical experts point out key support levels and negative trends in the market.

According to the source: Mint.