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.

The banking sector is once again in the headlines in the Indian stock market. HDFC Bank and ICICI Bank presented great results in the fourth quarter of FY 2024-25, which has returned confidence in investors and is expected to be a special focus on the Nifty Bank Index on Monday. Market analysts believe that after the better performance of these major banks, there may be a positive trend in banking stocks.

Banking sector getting stronger

In the last trading session, the Nifty Bank closed at 54,290.20 with a rapidly of 2.2 per cent, which is just 177 points from 54,467.35, the highest level of its 52 -week. In the last one week, the banking index has seen a tremendous jump of 3,287 points, that is, a increase of about 6.45 percent has been recorded. It is an indication that there is a positive feeling about the banking sector in the market.

Three big private banks showed strength

HDFC Bank, ICICI Bank and Yes Bank, these three private banks did not disappoint their investors in the fourth quarter. HDFC Bank’s standalone net profit has increased by 6.7 percent to Rs 17,616 crore on an annual basis. It has also increased by 5.3 percent on a quarterly basis.

At the same time, the country’s second largest private bank ICICI Bank has earned a profit of 12,630 crores with an annual increase of 18 percent. While the performance of Yes Bank was also a comfort, which recorded a profit of ₹ 38.12 crore with an annual growth of 63.7 per cent.

Bulish signals are also showing technical charts

According to technical analysts, the Nifty Bank has created a strong bullish candle on the daily chart, with a high level of 54,407.20. This is just 60 points away from its all -time high level. In the last seven trading sessions, Bank Nifty has shown a rise of about 10.68 per cent and has jumped 5,250 points from its recent swing.

Where will the bank Nifty go in the coming days?

According to a report published on Zee Business, Choice Broking believes that Nifty Bank’s closure near 54,290 shows that there is aggressive purchases in the market. The firm suggests that if the bank Nifty rests above 54,300, it can go from 55,000 to 56,000 levels in the next few sessions. The broking house believes that if there is any decline in the market, 53,600 or 53,000 levels should be seen as a purchase opportunity.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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There has been a tremendous boom in the markets for the seventh consecutive day. In such a situation, this jump has been seen in both Sensex and Nifty. With this, the compensation in the year 2025 has been completed. Such the enthusiasm of investing in the Indian market from foreign investors and heavy purchases in banking shares show tremendous. Now let us know what has been the reason for this market fast:

1-A tremendous return of the foreign investor

Foreign investors are once again seen returning to the stock market. On Friday, FPI made a net purchase of Rs 7,470.36 crore. However, the main reason for this is the change in the FTSC index. With this, the period of selling from foreign investors in October 2024 now seems to be stopping.

This has strengthened the sentiment of investors. According to Moneycontrol Dock Com Com, Jio Jeet Financial Chief Investment Strategist V.K. Vijay Kumar said that FPI selling, strengthening of rupee, reduction in inflation and strength of Indian rupee have returned so much confidence in the market.

Rupee stronger against 2-dollar

The Indian rupee climbed 37 paise to close at 85.61 per dollar against the US dollar on Monday. The rupee has benefited from dollar and foreign investment in the domestic market.

3-strong global signal

The third reason for the tremendous rise in the stock market is signs of strength in the global market. There is a phase of strength in the US stock market and an increase in the Indian stock market as well. US President Donald Trump has indicated to adopt a selective approach over a possible tariff. Donald Trump can only target countries whose trade with the US is surplus.

After these signs, now the fusers of American stocks have increased. At around 10 am in Somavar, Dau Future was trading with a gain of 0.47 percent. Earlier on Friday, the SNP 500 index and Dow Jones Industrial Average were 0.1%. At the same time, 0.5% jumped in Nesdech Composite. Investors are now monitoring the April 2 deadline for action related to possible tariffs.

4- Tremendous boom in banking stocks

The fourth reason for the boom in the stock market was a tremendous rise in banking stocks. On Monday, the Nifty Bank index jumped 1 thousand points and reached 51635 level during the business. While the shares of Kotak Mahindra Bank, Canara Bank and Punjab National Bank have witnessed the highest increase of 3 percent.

Improvement in 5-directors’ sentiments

The fifth and last reason for sharing the stock was improvement in investors’ sentiments. The Sensex saw a great rise of 3076.6 points, or 4.16 percent last week. At the same time, the Nifty also jumped up to 953.2 points i.e. 4.25 percent. Due to this, there has been an improvement in the sentiment of investors.

Siddharth Khemka, Research Head Wealth Management of Motilal Oswal Financial, said that the return of FII can continue in the stock market due to attractive valuation and better economic data.

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