New Delhi: The domestic stock markets have been falling continuously for the last five days due to the ongoing sell-off due to rising tensions in West Asia. In these five sessions, the BSE major index Sensex has fallen 4,147.67 points and has come below 82 thousand. Similarly, the NSE Nifty has fallen 1,201.45 points. However, it is still above 25 thousand.

Investors' wealth has declined by Rs 16.26 lakh crore in these five sessions and now the market capitalisation of all companies listed on BSE has come down to Rs 460.89 lakh crore or $5.49 trillion.

The market was bleeding even on Friday

The Sensex on Friday closed at a three-week low of 81,688.45 points, falling 808.65 points amid heavy volatility due to selling in FMCG, auto and energy sector stocks. During the trading, it reached a low of 81,532.45 and a high of 83,368.32. During the trading, the Sensex fluctuated by 1,835.64.

Similarly, the NSE Nifty fell 235.50 points to close at 25,014.60. During the trading, it touched a low of 24,966.80 and a high of 25,485.05. On a weekly basis, the Sensex fell 3,883.4 points and the Nifty fell 1,164.35 points. This is the worst weekly performance of both the major indices in the last two years. Talking about the broader markets, the BSE Midcap fell 0.94 percent and the Smallcap fell 0.80 percent. Only the IT index rose among the indices.

What is the opinion of market experts

Vinod Nair, Head of Research, Geojit Financial Services, says that investors are adopting a recovery strategy keeping an eye on the increasing conflict in West Asia. This has created a bearish environment in the domestic markets. Amid rising crude oil prices and fund flow to cheaper markets like China, pessimism is expected to continue in the market in the near future.

In the last three days, foreign institutional investors (FIIs) have made a huge sale of Rs 30,614 crore in the cash market. FIIs are withdrawing money from expensive Indian markets and investing it in cheap Hong Kong markets. FIIs hope that the monetary and fiscal stimulus being implemented by China will boost the Chinese economy and improve the earnings of Chinese companies. However, it remains to be seen how the Chinese reforms progress.

How will the market environment be on Monday

Now the future trend of the stock market will largely depend on the Iran-Israel conflict and the attitude of foreign investors. Market experts believe that if the crisis of Israel-Iran war deepens and foreign investors continue selling, then the correction phase in the Indian stock market may continue. However, after the recent decline, there may be a slight pause or slight rise in the market. Strength is visible in important sectors like IT, metal and pharma. But, the selling pressure in other sectors is sinking the market.

Now there is no possibility of getting any relief from RBI in the form of reduction in interest rates. Actually, due to the current geo-political tension, there has been a big jump in the prices of crude oil. This has also increased the risk of inflation. Now it is very difficult for RBI to give any kind of relief by reducing the interest rates.