Sensex down 700 pts, Nifty nears 24,500: Weak global cues, 9 other factors behind market decline

The Indian stock markets experienced a sharp decline on Tuesday, with the Sensex dropping 700 points and the Nifty approaching the 24,500 mark. This downturn was largely influenced by weak global cues, which have created a ripple effect across Asian markets. Rising crude oil prices have added to investor concerns, causing increased volatility and uncertainty in trading activities. In addition to the impact of crude oil prices, sustained foreign fund outflows have exacerbated the market's woes. Investors are pulling back in response to global economic uncertainties and geopolitical tensions, leading to a significant reduction in market liquidity. This trend has put additional pressure on domestic equities, prompting many traders to adopt a cautious stance. Other contributing factors to the market decline include fluctuating currency rates and apprehensions about potential interest rate hikes by central banks worldwide. These elements combined have created a challenging environment for investors, who are now closely monitoring global developments. As markets react to these diverse influences, analysts suggest that strategic portfolio adjustments may be necessary to navigate the current landscape.

— Authored by Next24 Live