After 17 years, the Bank of Japan has scrapped its negative interest rate policy and changed short-term interest rates from -0.10 to between 0-0.10 percent. It created a huge selling pressure in the Asian Market.
On 20th March, BSE Sensex opened green at 72,036.86, up by 24.81 points or 0.03%. The NSE Nifty50 too opened in positive territory at 21,843.90, up by 26.45 points or 0.12%.
However, since last week, the stock market has been falling constantly. On 19th March, BSE Sensex went down by 736.37 points to settle at 72,012.05. The NSE Nifty ended in the red trajectory at 21,817.45, which was down by 238.25 points or 1.08 per cent.
Major Reasons Behind Stock Market Fall
US Fed Rate Cut: After the expectations of a dip in the US Fed rate cut after the FOMC meeting. After the US inflation data and PPI print came last week, the market expects a higher interest rate in the upcoming US Fed’s FOMC meeting.
Trend reversal by Bank of Japan: After 17 years, the Bank of Japan has scrapped its negative interest rate policy and changed short-term interest rates from -0.10 to between 0-0.10 percent. It created a huge selling pressure in the Asian Market.
Income tax planning: As March is the month of the Income Tax Return (ITR) filing and some people log profit and others indulge in loss harvesting, keeps on changing their portfolios during this month.
Weak Asian markets: The Bank of Japan, trend reversal put pressure on the overall Asian market and also impacted on Global sentiments
Adani Stocks Falling: In the start of the week when there was a huge fall in Adani stocks, after reports that US prosecutors started their probe of Adani Group, the conglomerate’s several dollar bonds fell the most in more than half a year while share prices also fell up to 8%.
Shares of all 10 Adani group companies fell on Monday after a news report stated that the US prosecutors had widened their investigation against the group, reported Business Standard.
Though Adani Energy Solutions said it had not received any notice from the US Department of Justice, news agency Reuters reported.
However, the fall in stocks did not continue and later on Adani Group stocks recovered.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice.)