As soon as the market opened this morning, investors were glued to their screens. Everywhere, only one thing was happening – why is the sensex nifty stock market falling? Because till yesterday the market had shown a good recovery, but today as soon as it opened, the market sharply turned downwards. Within a few hours, both sensex and nifty broke their crucial levels and kept creating selling pressure throughout the day.

This is the nature of the stock market – sometimes it gives a surprise, sometimes a reason for happiness, and sometimes a reason for tension.  But whenever there is a rapid fall in the market, panic also spreads just as fast. Investors, traders and even casual market viewers start wondering what is the real reason for the Sensex Nifty stock market fall?

Today was also similar – charts were filled with red, investors were in a heavy mood, and there was talk of market fall everywhere.

Sensex Nifty Stock Market Fall – How did it start?

As soon as the market opened this morning, negative sentiment was visible. Global cues were already weak, there was selling pressure in Asia and US markets too, which had a direct impact on our domestic market.  Sensex showed a fall of almost 400 points, while Nifty also fell below its crucial psychological level.

This fall did not happen suddenly, but selling continued throughout the day. There was some consolidation in the morning session, but as soon as mid-session arrived, selling became more intense.

What was the special reason for the Sensex Nifty Stock Market Fall?

The stock market never falls due to just one reason. Even today there were many reasons behind the fall of the market. First of all global cues, fear of world recession, discussions of interest rate hike, and geopolitical tensions were in the news.

 The second factor came on the domestic front – profit booking was seen in some large cap stocks, which affected the entire index. The market was already in the overbought zone, so a correction was expected, but the speed was a little too much. Investors were also cautious because the quarterly results phase is ahead, and there was speculation in the market that the numbers may get muted.

Sector Wise Impact – Who was under more pressure?

If we look at it, the impact of the sensex nifty stock market fall was different in every sector. Banking stocks were under the most pressure, especially sharp selling was seen in PSU banks. IT stocks also fell due to weak global outlook.

 Auto and FMCG sectors provided some support, but their impact was limited due to overall negative breadth. There was also a lot of selling pressure in midcap and smallcap stocks, as these segments were already trading at high valuations.

Investor Sentiment – Panic or Opportunity?

Whenever there is a fall in the market, two types of investors are seen. One, who starts selling their holdings in panic, and the other, who sees this fall as an opportunity. Something similar happened today also.

New investors, who had entered the recent rally, sold in panic.  But seasoned investors tried to buy high quality stocks, because for them sensex nifty stock market fall is a temporary correction, not a permanent trend reversal

Closing Session – How was the market day?

The market closed near its day’s low even at the time of closing, which means that the recovery effort was not very strong. Sensex closed with a fall of almost 600 points, while Nifty also remained below crucial levels.

This closing reflects the mood of the market – investors are cautious, and may see some more volatility for a few days. But this is also the beauty of the stock market – it never remains static.

What to learn for long term investors

 Sensex nifty stock market fall is not only important for traders but also a reminder for long term investors. Remember that the market does not always go up, corrections are also healthy.

This is the time for long term investors to learn to avoid panic selling and rebalance their portfolio. Booking profit in high valuation stocks and adding to quality stocks is a sensible approach.

Can this fall become faster?

This question is in everyone’s mind: will the market fall further tomorrow or next week or will there be a recovery? Technically speaking, the market is now coming near the oversold zone, so a pull back is also possible in the short term.  But if the global sentiment remains weak, the Sensex Nifty stock market fall can be extended further.

Investors should understand that it is difficult to predict the daily movement, but it is important to understand the trend. The market never moves in a straight line, recovery also comes after the correction.

Conclusion – 

Today was a bit tough for investors. The Sensex Nifty stock market fall made the market mood heavy. But for those who look at the market from a long term perspective, this fall is also an opportunity to buy their favorite stocks at cheap prices.

The stock market will always remain unpredictable, sometimes surprise rallies, sometimes sharp corrections.  The important thing is to manage your risk, be patient and understand the basics of the market. Because there is always a recovery after a fall, and that is the real winning strategy for long term investors.