30 Jan 2026, Fri

Why did the stock market collapse before the budget? What are the reasons for investors being under pressure?

Share Market Crash: On the last day of the trading week before the budget, the condition of the stock market seems to be in bad shape. After three consecutive sessions of gains, the stock markets opened with a decline on Thursday. At around 9:30 am, BSE Sensex opened at the level of 81947 with a loss of 619 points. At the same time, Nifty was also seen trading at 25248 with a loss of 171 points.

On Thursday, Finance Minister Nirmala Sitharaman presented the Economic Survey in Parliament, in which strong growth has been estimated for the Indian economy. But despite this, there was a big fall in the stock market today. Let us know what are the reasons behind the stock market crash today?

selling pressure

A major reason for the decline in the stock market today is the selling by foreign investors. Foreign portfolio investors have sold Indian shares worth Rs 43,686.59 crore so far in January. Earlier, there has been a record outflow of about 19 billion dollars in 2025. On January 29 alone, foreign institutional investors sold shares worth Rs 394 crore. Due to this the pressure on the market is increasing. However, domestic investors have kept the situation under control to some extent by buying shares worth Rs 2,638 crore.

Fall in rupee is also a reason

The fall in rupee against the dollar has also affected the market sentiment. On Friday, the rupee opened at 91.9125 against the US dollar, which was almost equal to the previous closing price of 91.9550. On Thursday it reached its lowest ever level of 91.9850. So far this month the rupee has fallen by about 2.3%. Now it is gradually moving closer to the worst monthly performance of September 2022. Investors have become cautious due to this fall in rupee because weak rupee can increase input costs for companies. This may increase the burden on many sectors.

Sectoral index also fell

Sectoral trends are also a major reason for today’s decline in the market. In early trade, most of the sectoral indices were seen trading in the negative zone. A decline of more than 1 percent was seen in the Nifty Information Technology index. All its shares were seen down. The metal index fell by almost 4 percent. Shares like Hindalco and Tata Steel suffered losses.

Other sectors like financial, oil and gas and capital goods also remained under pressure. Apart from this, the rising price of crude oil is also a matter of concern. Rising crude oil prices and ongoing geopolitical uncertainties have increased volatility in global markets.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit, said the market is currently facing both ‘headwinds and tailwinds’ as the Budget approaches. # “Geopolitical issues are troubling global trade, including Trump’s continued threats to weaponise tariffs. Brent crude prices rising to around Rs 70 is a headwind for Indian macro,” he said.

Also read:

Stock market crashed before the budget, Sensex fell by 619 points; Nifty also down 171 points

Source link

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *