Why Market is Falling for the 5th Trading Session in a Row?

On November 13, 2024, the Indian benchmark indices Nifty 50 and Sensex slipped for 5th consecutive day after a rise in October retail inflation. At 09:16 AM, Nifty 50 traded at 23,822.45, down 0.26% while 30 shares of Sensex traded at 78,495.53, down 0.16%

Key Reasons Behind the Market Fall

Growing Retail Inflation

On November 12, 2024, the Ministry of Statistics and Programme Implementation reported that India’s retail inflation surged to 6.21% in October 2024, up from 5.49% in September. The All India Consumer Price Index (CPI) stood at 6.21% for October, with inflation rates for rural and urban areas at 6.68% and 5.62%, respectively.

Continuous Sell-Off by FPI

On November 12, 2024, FPI sold securities worth ₹3,024.31 crore, which indicates a continuous sell-off by the FPI.

Gold and Rupee Movement

On November 13, 2024, the rupee was down 1 paisa to an all-time low of 84.40 against the US dollar in early trade due to the persistent foreign fund outflows and a muted trend in domestic equities weighed on the local unit. On November 13, 2024, Gold Futures traded at 2,612.40, up 0.23% at 11:25 AM. 

Small-cap stocks faced continued pressure for the fifth consecutive day, with the BSE SmallCap index falling nearly 7% over the past week. This decline followed the release of weaker-than-expected earnings for the quarter ended September 2024 (Q2FY24).

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.