Sayantika Banerjee, Journalist:
For the past two weeks, stock indices have been consistently declining. The stock market has virtually collapsed, with both the Nifty and Sensex witnessing sharp falls — naturally causing great concern among investors.
Just two months ago, the Sensex had touched the 80,000 mark. But since then, it has been on a continuous downward trend. On Monday, the Sensex fell to the 77,000 range. Almost all stock indices are showing a downward movement, and investors are anxiously counting the days, wondering when the market will recover.
One of the major reasons behind the stock market decline is the withdrawal of funds by foreign institutional investors (FIIs) from the Indian market. Since September 27, these FIIs have been consistently selling shares. By the beginning of November, they had already sold shares worth ₹22,420 crore. Even though Indian entities, including mutual funds, have been continuously buying shares, it has not yet been enough to arrest the fall.
Newcomers to the world of stocks and funds are understandably alarmed by this prolonged downturn.
At present, most investors are uncertain about the future of the stock market, as there is no clear idea of when stability might return. So far, no immediate signs of recovery are visible.
Meanwhile, retail inflation has crossed 6%, reaching 6.21% in October. Wholesale price inflation has also risen to 2.36%, the highest in the past four months.
Although there is currently some sluggishness in the national economy, it is still projected that India’s GDP could grow by 7.2% in 2024.
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