Stock Market News: The domestic stock market saw a big decline on the last day of the week. The BSE Sensex broke around 650 points, while NSE Nifty fell 170.45 points, or 0.68 percent to close at 24,913.30. Due to this sharp decline, the total market cap of companies listed on BSE decreased by about Rs 2 lakh crore.

Let us know what is the special reason for such a big decline in the Indian stock market-

1-Under it is that this decline has come at a time when investors from all over the world are eyeing the Jackson Hole Conference, where the chairman of the US Federal Reserve, Jerome Powell is to be spent. His statement will clear the next attitude towards the American monetary policy. This was the reason that the profit booking in the market intensified just before the speech.

2-Secondary major reason was the weakness of the rupee against the dollar. On Friday, the rupee slipped 11 paise to 87.36. This happened when there was also a decline in crude oil prices. However, due to the intervention of RBI, the rupee faced a limited scope.

3-third important reason is American tariff. At present, 25 percent of American tariffs are applicable on India, but from August 27 it will be 50 percent. This heavy tariff spoiled the sentiments of investors and created an atmosphere of fear. This was the reason that despite the big announcement of Prime Minister Narendra Modi associated with GST reform, the market saw a sharp decline on Friday.

The 4-Ghrelu stock market fell on Friday when the Sensex and Nifty rose faster for six consecutive days after the announcement of the GST reform earlier. The most pressure in this decline was on the IT and Financial Sector. Legendary shares like ICICI Bank and HDFC Bank led to heavy selling, due to which the market’s stand weakened. The result was that most of the index of Nifty and Sensex were seen trading in red mark.

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Kalyan jewellers shares: Kalyan Jewelers, the country’s well-known retail brand, recently released its quarterly report, which saw tremendous profits and revenue growth. The company’s net profit increased to Rs 264 crore on an annual basis, which was Rs 177.7 crore in the same quarter last year. That is, there has been an increase of 48.6 percent in profits. At the same time, the company’s revenue also increased to Rs 7,268.4 crore, while last year it was Rs 5,527.8 crore, which led to an annual increase of 31.5 percent.

What was the quarter result?

Despite these strong quarterly results, Kalyan Jewelers’ shares saw a huge decline on BSE on Friday. The stock closed at Rs 615.65 a day earlier, but it fell to Rs 534.95 at around 10:50 am on Friday morning at around 10:50 am. However, after this it saw a little recovery and it was seen trading at Rs 550 with a decline of 6.90 percent. This decline has surprised investors, because the stock usually sees a boom after better results.

What is advice?

So the question arises as to why the stock fell despite a great performance? According to experts, this decline may be the result of the “Sell on News” strategy, in which investors recover profits after good results. Apart from this, some investors may also worry about the company’s valuation or future margin growth, due to which this correction has been seen.

However, the broking firms still look optimistic about this stock. Motilal Oswal has fixed its target price of Rs 700, giving the shares of Kalyan Jewelers ‘bye’. He believes that between 2026 and 2028, the company is possible to increase revenue increase of up to 21 percent annually. At the same time, ICICI Securities has also recommended the purchase of this stock and has kept the target price of Rs 670. It is also worth noting that the Government of Singapore also has a stake in Kalyan Jewelers, which reflects the trust of international investors.

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There is a lot of uproar in the Indian stock markets. Sensex and Nifty’s week’s trick has confused many market experts. Small and medium stocks have seen a significant decline after six days. According to the market experts, there are three major reasons behind this uproar of the stock market. So let us know which factors are those who continue to be upset.

1- Concern about global tariffs:

Actually, US President Donald Trump has indicated to install new tariffs on the automobile sector. Due to which the sentiment of investors has suffered a big setback. The first Trump had indicated that not all the new tariffs would be implemented from April 2. This recently brought some relief to the market.

The market was hoping that perhaps reciperoching tax will not be imposed on India from April 2. But, uncertainty remains about this till now. In a report by news agency Reuters, a White House official made it clear that President Trump is standing on his policy. Due to this, there is a situation of confusion among investors and they are avoiding new stakes till clarity about the trade policy.

2- Profit after boom

The stock markets had seen the biggest rise in the last four years. This fast was seen on Monday. After which the profits of investors were seen. Due to selling pressure, 11 out of 13 sectorial index out of 13 went into red mark.

Only the Nifty, private bank and IT sector were successful in keeping themselves in the green mark. Equity head of Kotak Securities Shrikant Chauhan said that the structure of the market remains positive in the short term. But due to more purchases, selling is being done at high levels.

3- Weak global signal

The third and last reason is weak global signal. The impact of weakness in the global market, especially Asian markets, also appeared on the Indian stock markets. Market experts say that the market is currently looking towards global signals for its move, but how durable the market will be, it will depend on which companies have corporate quarterly consequences and how is the situation of consumption in the domestic market.

Significantly, due to weak results of companies, the stock market had seen a decline for the last several months recently. Due to this, market experts started finding the valuation of companies high. Till the bounce in corporate income, there will be doubt about any speed in the market being durable. Anyway, there is a saying that the share prices are a slave of its earnings in the long term.

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