5 reasons why Indian stock markets are down 1.3% today
Key indices-BSE and NSE- of the Indian stock market fell over 1% in the afternoon trade on Monday.
The 30-scrip index of the BSE was trading down over 300 points in the afternoon trade while NSE Nifty declined below the 8,200-mark.
At 12:21 hours, the BSE Sensex was trading down 339.75 points, or 1.28%, at 26,296.00.
At 12:21 hours, the Nifty index of the National Stock Exchange (NSE) was trading down 94.80 points, or 1.16%, at 8,075.25.
Here are the five reasons why the stock markets fell on Monday:
1. Weak IIP Data:
Government of India released Index of Industrial Production (IIP) data for April month after the closing of market hours on Friday. IIP for April month stood down at 0.8% which was the first decline in three months on the back of drastic fall in capital goods production and manufacturing activities.
2. Inflation Data:
Government of India will release the consumer price-based index (CPI) inflation later on Monday.
3. US Federal Reserve Meet:
US Federal Reserve's chief Janet Yellen statement has raised sentiment among investors that there might be rise in the US interest rates.The US Federal Reserve will conduct a meet next week.
4. Weak International Cues:
Asian stocks fell the most in over two months and the Japanese yen soared on Monday as riskier assets took a hammering before key central bank meetings this week and as nervous investors awaited a referendum that could see Britain exiting the European Union (EU). MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.6%, its biggest daily fall since April 5. The investors sentiment got reflected in the Indian stock market too which fell over 1% on Monday.
5. Crude Oil Prices:
The crude oil prices in the international market fell below $50 per barrel, which led to crude oil futures in India falling by 1.55% to Rs 3,247 per barrel on Monday. According to analysts, the fall in crude oil prices is in tune with a weak trend in Asian market where prices slipped again on Monday, extending last week's losses, fuelled by worries about the global economy, Britain's future in the EU and producers bringing more rigs back online.
(With PTI & Reuters Inputs)