1 Jun 2026, Mon

Stock Market: On Monday, the Indian stock market closed with a decline for the fourth consecutive trading session. The day started well, but the market came under pressure due to increased selling at high levels. Two main reasons are being given for this. Firstly, there is the ongoing war between Iran and US and the second major reason is the changing nature of weather.

At what price did the market close?

  • NIFTY 50 fell 0.70% to close at 23,382.60.
  • BSE Sensex closed at 74,267.35, falling 508 points or 0.68%.
  • Nifty Bank closed with a fall of 1.10%.
  • India VIX, indicating fear in the market, increased by 2.16% to 16.54.

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These are the reasons for the fall of the stock market
There are many reasons behind the fall of the stock market. Let us explain:

Concern increased due to America-Iran tension
The biggest pressure on the market was due to increasing tension between America and Iran. According to reports, America attacked some military bases of Iran, in response to which Iran claimed to target the American base. Due to this tension, the prices of crude oil increased. India imports a large part of its oil requirement, hence due to oil becoming expensive, the import bill may increase, there may be pressure on the rupee, there is a danger of inflation increasing, that is why investors adopted a cautious attitude.

Forecast of weak monsoon increases concern
IMD has reduced the monsoon forecast to 90% of the long term average. Due to less rainfall, farmers’ income may be affected, agricultural production may decrease, expenditure in rural areas may reduce. This may affect FMCG, tractor, two-wheeler, fertilizer and agrochemical companies.

Auto sales figures remained mixed
Auto sales figures for the month of May did not completely reassure investors. Maruti Suzuki, Hyundai Motor India and TVS Motor Company reported growth in sales, but Ashok Leyland’s overall sales declined by 4%. Escort Kubota expressed concern over rising costs and a weak agricultural market. Due to this, investor confidence in the auto sector remained weak.

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The pace of GST collection slowed down
India’s GST collection in May 2026 stood at Rs 1.94 lakh crore, which is 3.2% more than last year. However, GST collection record in April was Rs 2.42 lakh crore. In such a situation, the figures for May indicated that the pace of economic activity and demand may slow down somewhat.

Which sectors were most affected?

  • Nifty FMCG was the biggest losing sector, falling 2.3%.
  • Nifty IT became the best performing sector by rising more than 2.5%.

Reason for Monday’s decline
Let us tell you that there were many reasons behind Monday’s decline like America-Iran tension, rising oil prices, weak monsoon forecast, mixed auto sales figures and slow pace of GST collection. Although there was strength in IT stocks, most sectors of the market remained under pressure and widespread selling was seen.

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By Admin

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