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News Topical, Digital Desk : On the day of monthly expiry of futures trading, the Indian stock market is currently trading flat. But, a big decline has been seen from the day's highs. Earlier in the early trade, the market opened with a gain of about a quarter percent and then a decline was seen after that. During the early trade, the Nifty reached close to 25,000, but then a decline was seen from there. Earlier it was expected that the market would see a rise today. Donald Trump's reciprocal tariff was declared illegal by a US court, after which the Asian markets returned to a rise in the morning.
On Thursday, May 29, the Sensex rose 504 points to 81,816 in the morning, but fell about 600 points from there. Similarly, the Nifty touched the level of 24,889 at the beginning of the day, but came below 24,750 by noon. India VIX also saw a decline of 6%. Experts are saying that the market is currently in a phase of consolidation. Stocks like Jio Financial Services, HDFC Life, BEL, Bajaj Finance and HDFC Bank saw a decline of up to 2% today.
On Thursday, Siddharth Khemka of Motilal Oswal had said that the market is expected to remain in consolidation with buying in select stocks. Investors are currently keeping an eye on global news and recent developments. Due to many global developments, caution is currently being seen in the market. The US central bank i.e. the Federal Reserve has released the minutes of the recent policy meeting. Concerns are being raised about inflation in this.
What are the major reasons for this decline in the market today? 1. Investors and traders cautious on F&O expiry day Nifty and Bank Nifty derivatives have their monthly expiry on Thursday i.e. today. Traders are looking cautious on the expiry day. According to Bajaj Broking Research, Nifty has been moving between 24,400–25,200 for the last 12 days and unless there is a big breakout, this trend may continue.
2. Federal Reserve concerned about inflation The minutes of the Fed's 6-7 May meeting showed that almost all of the 19 officials are concerned that inflation may persist for a long time. Interest rates were kept stable. Fed members say that now "difficult decisions" may have to be taken between inflation and employment.
3. Geo-political tension increased German Chancellor Friedrich Merz has talked about giving long-range missile systems to Ukraine. In response, Russian President Vladimir Putin warned that if German soldiers were involved in such an attack in Ukraine, it would be considered an attack by Germany on Russia and it would have serious consequences.
4. Rise in crude oil prices Brent crude rose 1.11% to $65.62 per barrel in the international market. This is a matter of concern for oil importing countries like India because it puts pressure on the rupee, increases inflation and has a bad effect on the equity market, especially crude oil-related stocks. VK Vijaykumar of Geojit Investments said, "Nifty is currently moving in a limited range between 24,500 and 25,000. It seems a bit difficult to go above or below this in the near future."
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