This was a decision investors had been waiting for. But on Monday, the market gave up all its gains and recorded even greater losses.:

News Topical, Digital Desk : Stock Market Crash: The start of the second week of December proved to be a difficult one for Indian stock markets, where significant selling occurred on the heels of any significant negative news. Last Friday, when the RBI's policy meeting announced an interest rate cut, the markets closed sharply lower.

This was a decision investors had been waiting for. But on Monday, the market gave up all its gains and posted even more losses. The Nifty 50 slipped below its 20-day moving average (DMA), and 46 of its 50 stocks were trading in the red.

The broader market situation was even worse.

96 out of 100 stocks in the midcap index declined.
97 out of 100 stocks in the smallcap index are in the red.
The midcap index has fallen by more than 1,200 points and has declined in 4 out of the last 5 sessions.
It has lost 1,800 points so far from its high of 61,180 on November 17.
Investors' wealth worth ₹7.5 lakh crore has been wiped out in this massive sell-off.

Key triggers for market decline

1. US Federal Reserve policy meeting The biggest international trigger this week is the US Fed's policy announcement. The policy outcome will be announced on Thursday morning Indian time. This increased uncertainty has led investors to reduce risk.

2. A flood of IPOs has increased market pressure The continuous influx of new IPOs into the market has created significant supply pressure. Five new IPOs opened today, taking the number of IPOs this year to over 100, and fundraising to nearly ₹1.8 lakh crore, exceeding last year's total. ICICI Prudential AMC's ₹10,622 crore IPO will also open this week. This will be the fourth-largest issue of the year.

3. Investors should avoid weak stocks supply pressure is increasing in the market. He said, "Stocks whose fundamentals are not strong or whose prices are very high should not be bought." He sees opportunities in engineering, pharma, and select renewable energy stocks.

4. Range-bound market, but downside limited he does not see the Nifty going below 25,800. According to him, the Nifty could see an upward move once the current consolidation phase ends.