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News Topical, Digital Desk : The Indian stock market failed to recover today, closing lower for the third consecutive day. Despite a strong opening, the Nifty failed to hold above 25,800. Heavy selling in financial, retail, and mid-cap stocks further weakened sentiment. The mid-cap index fell more than 1%, while several large stocks fell by up to 10%. On the other hand, metal stocks provided some support on expectations of a Fed rate cut. The DGCA order on IndiGo and the decline in capital market stocks also dampened the market sentiment.
The Indian stock market witnessed significant volatility today. The opening was good, but as trading progressed, selling pressure took over, and the market ultimately closed in the red. This is the third consecutive day that both the Sensex and Nifty have declined.
Sensex closed
down 275 points : Nifty
closed at 84,391 Nifty closed down 82 points : Nifty Bank closed down 262 points : Midcap Index closed at 58,960 Midcap Index closed down 668 points : 59,007 - Midcaps showed the most pain
Why is the market falling? Four major reasons (1) Concerns about the Fed's 2026 policy guidance - The market expects the Fed to announce its third consecutive rate cut today. But the real concern is: what will the Fed signal for 2026? What impact will the differing views of Fed officials have on inflation and the labor market? Who will replace Chair Jerome Powell as the next Governor and what will his or her thinking be? Harish Krishnan, Co-CIO of Aditya Birla Sun Life AMC, said, "A rate cut is almost priced in, but the 2026 outlook, the impact of tariffs on inflation, and a change in Chair will be most important."
(2) Weakness in global market- Major Asian indices Shanghai SSE , Hong Kong Hang Seng, Japan Nikkei 225 were all in the red. Wall Street also closed weak last night, which had an impact on the Indian market.
(3) Continuous selling by FIIs- Foreign investors sold shares worth ₹3,760 crore on Tuesday- This is the 9th consecutive day when FIIs remained net sellers. FII outflow has a direct impact on the domestic market- Liquidity decreases. Risk sentiment weakens. Investors' confidence in emerging markets decreases
(4) Crude oil prices rose Brent crude rose 0.15% to USD 62.03 per barrel. India is a major importer of oil, hence the rise in crude prices increases inflation concerns. It puts pressure on the margins of companies. Weakens market sentiment According to Anand James, Chief Market Strategist of Geojit Investments- There will be a fear of low of 25732 in Nifty today. But a complete collapse is unlikely. Short covering could begin above 25923. A sharp rally above 26030 is possible. The market is currently range-bound, and any major direction will only become clear after signals from the Fed.
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