Share market down: Know the reasons
Stock market falls due to these 3 reasons: Sensex drops 250 points, Nifty below 25,650: The initial rally in the Indian stock markets on Wednesday, February 18, could not be sustained. The Sensex slipped 400 points from the day’s high. The Nifty also traded below 25,650. With this, the rally that had been continuing for the last two days in the stock market came to a halt. Selling in IT stocks and profit booking in large-cap stocks weakened the market sentiment.
Around 10:28 am, the BSE Sensex was trading at 83,194.19, down 256.77 points or 0.31 percent. The Nifty was trading at 25,649.60, down 75.8 points or 0.29 percent.
1) Selling in IT stocks:
The biggest reason for the decline was profit-booking in the IT sector. After the previous two days of gains, investors sold IT stocks today. Stocks like Persistent Systems, Infosys, and Tech Mahindra fell by 2.5 to 3%. The Nifty IT index fell by about 2.4%, having risen by 1% in the previous trading.
All 10 stocks included in the Nifty IT index remained in the red. Infosys fell by about 3%, losing the previous session’s gains. Although the company recently spoke of the huge opportunities associated with AI, experts believe that most companies are not yet ready to adopt AI on a large scale.
2)Weak Global Cues:
Weak cues from Asian stock markets also impacted the Indian market. Earlier declines in US futures and the Nasdaq have weakened investor sentiment. Globally, investors remain cautious. Concerns about potential US trade policy, bond yields, and the tech sector are reducing risk appetite. This has had a direct impact on the Indian market.
3) Profit-Booking:
The market had seen a strong rally over the past two days. Consequently, investors chose to book profits at higher levels. Selling pressure was particularly visible in heavyweight stocks like banking and IT. This increased pressure on the index.
