Why the biggest fall in Sensex in 7 months: Agricultural law and Reliance’s Aramco deal are the biggest reasons, the market will remain under pressure even further

The Bombay Stock Exchange (BSE) Sensex recorded the biggest fall in 7 months today. The market closed at 58,465, down 1,170 points. This is the biggest drop in a single day since April.

However, there was a huge fall in the market for the last 6 trading days. There was a decline of 112 points on 9 November, 80 points on 10, 433 points on 11, 396 points on 16 November, 314 points on 17 and 372 points on 18 November. That is, there was a decrease of about 1,700 points in these days. While the Sensex fell 1,170 points on Monday.

Major reasons for the decline of the market
In fact, there are many reasons for the decline of the market. Firstly, the withdrawal of all three agricultural laws by the central government showed its effect on the shares of government companies. After this the deal of Reliance Industries with Saudi Aramco got cancelled. Third, the stock of Paytm continued to fall heavily for the second day. Along with increasing the level of inflation in many countries, the lockdown due to Corona also led to the decline of the market. Along with this, the investors have also made a lot of profit in the boom of the market.

preparing for lockdown in australia
Australia said that it is again imposing lockdown. Will make vaccination mandatory from February. Slovakia, Germany, Belgium are also going to impose lockdown among other countries. Apart from this, the European central bank is now planning to increase rates. It has said that inflation may remain above 2%. Asian markets continued to trade in decline on Monday. Tokyo, Hong Kong, Sydney and other markets declined.

what will happen next
With this decline, the market has now entered the consolidation phase. That is, there can be special fluctuations in the stock market. Like today there was a good rise in the shares of Airtel and Vodafone in the market. The reason was that the telecom companies can increase the tariff in the coming time. It is anticipated that the market may remain under pressure this week and next week.

Because of this, companies that bring IPO can postpone their issue. Increasing cases of corona in Europe and other countries can affect the global economic recovery.

market crash
The Sensex closed at 59,984 on October 28, down 1,158 points. Earlier, the Sensex closed at 47,883 on 12 April 2021, falling 1,707 points. On April 30, the Sensex closed down 983 points. On September 24, the Sensex crossed 60 thousand for the first time.

Stocks that contributed the most to the decline
The stock of the country’s largest company Reliance Industries fell more than 4%. Its market cap came down to Rs 15 lakh crore. Shares of Bajaj Finance lost 6% and Bajaj Finserv lost more than 5%. Bajaj Auto’s stock lost over 3%. While stocks like Paytm, NTPC and Maruti also put tremendous pressure on the market. Banking shares fell up to 3% today.

Nifty below 17,500 for the first time in two months
For the first time in the last two months, the Nifty came below 17,500. It closed today at 17,416. On October 19, BSE had touched the level of 62,245. This made the market very expensive. The Sensex has lost 5.8% or 3,600 points in the last one month. Of this alone, 1,170 points (1.96%) have declined today.

where to shop
Market experts say that the current fall of the market may cause concern in the near term. However, going forward, the market will also touch new highs. In such a situation, if there is a significant fall in a good stock, then investors can buy in it. Today there are many such stocks which are badly beaten in the fall of the market.