Sensex and Nifty Drop: Reasons Behind Market Decline
On July 3, Sensex and Nifty experienced profit-booking, leading to a significant decline. Factors such as rupee depreciation, foreign fund outflows, and uncertainty in the India-US trade deal contributed to the sharp pullback.
Sensex and Nifty experienced profit-booking on July 3. The benchmark equity indices started strong but ended lower due to foreign fund outflows, rupee weakness, and uncertainty surrounding the India-US trade deal. Sensex rose in the morning but dropped over 650 points to a low of 83,186.74. Nifty also fell from 25,563.70 to 25,400.
SBI Life Insurance Company, Kotak Mahindra Bank, Bajaj Finserv, JSW Steel, and Grasim Industries were top decliners, with losses up to 3 percent.
The sharp pullback was attributed to:
- Rupee Depreciation: Indian rupee weakened to 85.70 against the US dollar due to global risk aversion and foreign outflows.
- Foreign Institutional Investor (FII) Selling: FIIs sold shares worth Rs 1,561.62 crore on Wednesday, impacting domestic equities.
- India-US Trade Deal Uncertainty: Concerns arose over the lack of clarity in the trade negotiations, with both sides having differing demands.
According to the source: Moneycontrol.
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