The Indian stock market is witnessing a huge decline on Thursday (3 October). The major index Nifty and Sensex closed down by about 2%. In terms of points, this decline is of 500 points in Nifty and more than 1800 points in Sensex. This is the biggest intraday decline in the market after 5 August 2024. This decline is being seen in the Indian market due to tension in the Middle East, new SEBI rules on F&O and increasing interest of foreign investors in the Chinese market.

Selling is being seen in all 13 sectors including Nifty Bank, Energy, Auto and Infra. There is a decline of 2-3% in these. Selling pressure is being seen in the broader market as well as the major index. Midcap and Smallcap indexes have slipped by about 2%. Volatility index India VIX also saw a jump of up to 13%. Let us know further what are the 5 reasons for the decline in the market.

1 - Growing tension between Iran and Israel
Geopolitical tension has increased in the Middle East after Iran's ballistic missile attack on Israel. Israel has also threatened to retaliate in a statement after this attack. There is fear in the market about the future direction of this war.

2- Steps taken by SEBI on F&O
The market is also worried about the decrease in trading volume due to the announcement of new rules regarding F&O by market regulator SEBI. Retail participation is expected to decrease due to increase in the contract size and limit of weekly expiries. This will also affect the liquidity of the market. 3- FIIs' investment shifts from India to China Foreign institutional investors are also selling in the Indian market. In fact, recently China's central bank People's Bank of China (PBoC) has announced a relief package to rescue the economy from the current crisis. After this, China's stock market is seeing a boom. The trend of such foreign institutional investors is moving towards China due to better valuation. Due to this also, pressure is being seen on the Indian market. 4- Crude price near $75 The effect of increasing tension in the Middle East is also being seen on the price of crude oil. Brent crude oil has reached close to $ 75 per barrel. Many media reports fear that Israel may target Iran's oil fields in a retaliatory attack. In such a situation, a big crisis can arise regarding the supply of crude oil. This will affect those countries including India and China, which are more dependent on crude oil imports. There will also be a risk of rising inflation. 5- Anxiety about US elections The market is also nervous about the election dates in America coming closer. This is being considered as the closest contest in the history of America. In some selected states, a close contest is being seen between the Republican and Democratic parties. In such a situation, it is difficult for the market to predict the results at the moment.

However, despite all these 5 challenges for the market, analysts believe that this decline in the Indian market is not going to last for long. From a technical point of view, analysts say that as long as Nifty does not break the zone of 25,250 - 25,100, this decline in the market should be seen as a buying opportunity.