Stock market news today: Indian shares are witnessing a huge decline on the first day of the trading week. Both Sensex and Nifty opened with a decline, due to which investors suffered huge losses as soon as the market opened.
Trump’s Tariff Threat Causes Global Market Panic: Actually, the market is witnessing a decline after the announcement of US President Donald Trump. Trump has warned of imposing new taxes on many countries this week, which is likely to affect business around the world, due to which investors’ concerns have increased.
Key Reasons Behind Today’s Stock Market Crash
Foreign Institutional Investors (FIIs) Continue Selling:
- Sensex and Nifty declined in early trade on Monday amid continued withdrawal of foreign capital.
- According to stock market data, foreign institutional investors (FIIs) were sellers on Friday and sold shares worth Rs 470.39 crore net.
Global Markets Show Negative Trends
- In Asian markets, Japan’s Nikkei, South Korea’s Kospi and Hong Kong’s Hang Seng were in decline, while China’s Shanghai Composite was in profit.
- The US markets closed with a negative trend on Friday.
- International standard Brent crude rose 0.56 percent to $ 75.08 per barrel.
RBI’s Repo Rate Cut Fails to Boost Sentiment
RBI repo rate cut news: On the last trading day of last week, i.e. Friday, RBI cut the repo rate by 25 basis points. It was being considered another big gift after the 8th Pay Commission and the reduction in income tax in the budget. Because it is expected that home loans, car loans and other types of loans will become cheaper. However, the stock market did not seem happy with the rate cut and the comments of RBI Governor Sanjay Malhotra.
Immediately after the announcement of the rate cut on Friday, the stock market fell by half a percent. In fact, economic experts believe that the rate cut can increase the pressure on the rupee even more, which is already at an all-time low level. Experts are counting more disadvantages than benefits of the rate in the current circumstances. This also affected the sentiment of investors.
Rupee Hits Record Low Against US Dollar
Rupee vs Dollar latest update: The rupee fell 45 paise to a record low of 87.95 against the US dollar in early trade on Monday amid strong US currency in foreign markets and negative sentiment in domestic stock markets. Foreign exchange traders said the dollar index reached 108 after US President Donald Trump announced a new 25 percent duty on all steel and aluminum imports.
