Sensex, Nifty On Hotbed: A Snap View Of Why Stock Market Is Falling Today In 15 Points!

In a domino effect triggered by the hotter-than-expected US inflation print, the Indian stock market witnessed a significant slump on February 14. The benchmark indices, BSE Sensex and NSE Nifty 50, tumbled nearly 1% each in morning deals, echoing the weakness in overseas markets. Here are 15 reasons why market is witnessing a downturn.

1. Benchmark indices BSE Sensex and NSE Nifty 50 plunged on February 14, influenced by weaker overseas markets due to a hotter-than-expected US inflation print.

2. Analysts predict intensified selling pressure, potentially causing the Nifty to further decline towards the 21,350-21,200 level, amidst firming bond yields and Dollar rates.

3. Sensex and Nifty both dropped nearly 1% each to 70,809.84 and 21,530.20 in the morning deals on February 14.

4. Broader markets also suffered, with Nifty Midcap 100 and Nifty Smallcap 100 indices slipping up to 1%.

5. India VIX, measuring market volatility, rose over 1%, trading above the 16 level.

6. Nifty IT index emerged as the worst sectoral performer, declining 2% within the first hour of trade due to the strengthening US Dollar overnight.

7. All sectors, except Nifty Media and Auto indices which eked out slim gains, faced losses, with the majority drowning in a sea of red.

8. The US Dollar index reached three-month highs, trading above 104 on February 13, after the hot US inflation print shifted the possibility of rate cuts from March to June.

9. Strengthening US Dollar against the Rupee impacted IT stocks, as a significant portion of their revenue comes from exports to the US.

10. HDFC Bank stock led losses, causing the Bank Nifty index to slip by 1% on February 14 in early deals. Other banks affected include Bank of Baroda and Bandhan Bank.

11. Globally, the hotter-than-expected US inflation triggered a selloff in US markets overnight. Dow Jones declined by 1.3%, marking its worst performance since March 2023. S&P 500 and NASDAQ Composite indices dropped by up to 1.8%.

12. The 10-year US treasury yield spiked by 15 basis points overnight to 4.3%, while the 2-year treasury note climbed by 19 bps to 4.6%.

13. In January, the consumer price index increased by 0.3% on a monthly basis and by 3.1% year-on-year, surpassing Street estimates. This justified the Fed's decision to postpone interest rate cuts beyond market expectations, shifting the prospect to July from June.

14. The Indian stock market indices, Sensex and Nifty 50, were expected to fall on Wednesday, tracking losses in global markets following higher-than-expected US inflation data.

15. Trends on Gift Nifty had indicated a gap-down start for the Indian benchmark index, trading around the 21,640 level compared to Nifty futures' previous close of 21,816.