'Black Friday' in the market before Budget 2023! The market turned red due to selling, a deep fall due to these 4 reasons
Benchmark indices Nifty and Sensex have broken up to 2 per cent. In the last trading day of the week, selling dominated in all sectors, but banking stocks were the worst hit. Adani Ports, Adani Enterprises and other Adani Group scrips along with ICICI Bank, SBI and BPCL were the top Nifty losers.
Sensex and Nifty 50 lost more than 2 percent on Friday
Highlights
- Banking stocks were heavily beaten in the market today.
- The selling of foreign investors continues before the budget.
- There has been a decline in the shares of Adani Group in the selling.
Mumbai. Stock Market Crash dominates again in the market which closed with a fall on the day of monthly expiry on 25th January. Benchmark indices Nifty and Sensex have broken up to 2 percent. On the last trading day of the week, selling dominated in all sectors, but banking stocks were the worst hit. In financial stocks, more pressure is being seen on PCAU banks. At the same time, the energy sector has also broken by more than 5 percent.
ICICI Bank, SBI, and BPCL, along with other scrips of Adani Ports, Adani Enterprises, and Adani Group, dominated the decline in these top Nifty stocks. At the same time, there has not been much decline in Nifty Auto, FMCG, and Pharma index.
Despite strong global cues, the fall in Indian markets is surprising. Actually, investors are nervous before budget 2023. These are the 4 major reasons for the recession dominating Dalal Street…
Fear of Budget 2023!
Active investors in the market are expecting the government to continue with its spending on basic infrastructure and announce measures to attract more funds from the private sector. If the expectations of the market are not fulfilled, then a decline can be seen in the market. The FY24 fiscal deficit numbers in the budget will also be keenly watched. Foreign brokerage Morgan Stanley expects the fiscal deficit to be 5.9 percent of GDP in FY24 as against 6.4 percent in FY23.
Heavy fall in heavyweight stocks
Continuous selling dominates in the shares of Adani Ports and Adani Enterprises. Today these stocks fell by 12 percent and 7 percent respectively. On January 25, Adani Ports closed with a decline of 6.3 percent. At the same time, other heavyweights HDFC Bank, SBI, and Reliance Industries also saw a decline of 2-5 percent.
UN slashes India's GDP forecast The
United Nations has slashed its GDP growth forecast for India for the calendar year 2023 to 5.8 percent, citing the impact of tight monetary policy and weak global demand.
The United Nations' World Economic Situation and Prospects 2023 report said, "Growth in India is expected to remain strong at 5.8 percent, although slightly lower than the projected 6.4 percent in 2022, as higher interest rates and a global slowdown hamper investment and depends on exports.
Selling by foreign investors
Vinod Nair, head of research, at Geojit Financial Services, said, "Market sentiment has been affected by persistent FII selling, where capital is being transferred to other emerging markets due to better valuations." At the same time, the US economy expanded at an annual rate of 2.9 percent from October to December, which was better than expected. Economists had predicted a growth of 2.3 percent. This suggests that the US Federal Reserve may remain dovish for a longer period.
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