During the first trading session of the week, the selling pressure in the Indian stock market is continuously increasing. Nifty has slipped by more than 1.2%. Whereas, Sensex has also slipped by more than 1,000 points. Pressure is being seen from the upper levels in Nifty Bank. At 01:30 pm, the stock market was seen trading at the lower levels of the day. During this time, Nifty was seen trading at the level of 25,850, slipping 325 points i.e. 1.24%.

During this time, the Sensex also slipped 1,140 points or 1.3% to trade near 84,440. At the same time, Nifty Bank also slipped 825 points or 1.54% to trade near 53,000. On Monday, the market started in the red, but after that the pressure kept increasing. The total market capitalization of all the companies listed on the BSE has seen a decline of ₹ 3.6 lakh crore today. Let us know further what are the reasons for such a sharp decline in the market.

1. SEBI board meeting: Market regulator SEBI has an important board meeting today. SEBI's board meeting is being held for the first time after the Hindenburg case. According to the information received, a big decision can be taken in this meeting regarding the F&O expiry rule. Also, the scope of the rule related to insider trading can also increase. On July 30, SEBI issued a consultation paper, in which it was said to focus on a single expiry of derivative contracts. It was also said to rationalize the strike prices. Apart from this, many other changes have been proposed. 2. Relief package in China: The Chinese government has announced an economic relief package to improve the economy. After this, the markets here are witnessing a boom. Shanghai Composite was seen working with a gain of about 8%. Actually, after the announcement of this relief package, it is expected that revival can be seen in the Chinese economy. The momentum is expected to continue due to cheap valuation in the markets here. In such a situation, FIIs can turn to China. 3. Decline in Japan's market: Japan's market is witnessing a decline since the beginning today. The major index here has slipped by more than 5%. After the election results here, Shigeru Ishiba of the Liberal Democratic Party will be the next Prime Minister. After the fall in the markets here, the sentiment among investors regarding the Indian market also appeared negative. 4. Tension in the Middle East: Tensions in the Middle East seem to be increasing. Israel has intensified attacks on Iran-backed parties. Israel has killed Hezbollah chief Sayyed Hassan Nasrullah in Beirut. After this, attacks have also increased from Hezbollah in Lebanon and Houthi rebels in Yemen. Middle East tension is not new for the market, but after the recent situation became serious, investors are worried. 5. Concern about valuation: In the recent past, the Indian stock market has seen a record-breaking rise. Most experts are predicting growth in the market in the medium to long term. This estimate is based on tremendous economic growth, retail inflow. But, in the short term, profit booking has been seen amid concerns about valuation. Nifty50's P/E is 25.8. Whereas, one-year forward P/E is 21.6.