Shikha Chaurasia

All the Nifty-50 companies were on the red mark when the market closed. The biggest fall on BSE was 9.15 per cent in ONGC, 6.98 per cent in IndusInd Bank, 6.26 per cent in Mahindra & Mahindra and 6.19 per cent in State Bank of India. Let’s see the main reasons for the decline in the market today.

Impact of the fall in European markets

The opening of European markets with the fall has a direct impact on the Indian stock markets. The UK’s FTSE 100 was trading 2.98 per cent or 195.83 points lower on Monday evening. This decline has been seen in European markets due to the introduction of a new type of Coronavirus in Britain. After the revelation of this new strain of Coronavirus, stress and panic has increased once again worldwide. The number of Coronavirus patients has increased once again in Britain. In view of this, many countries of the world have banned movement from Britain. Not only this, but the European neighbours of the UK have also started closing their doors for UK travellers due to the risk factor.

Profit booking

The market is witnessing profit booking as the stock market is near record highs. Experts are advising investors on profit-booking at regular intervals due to the persistence of the Coronavirus and economic instability. Due to this, there is selling in the stock markets.

Weak global trend

Monday’s session has seen a decline in most Asian stock markets after the revelation of a new strain of Coronavirus in Britain. Japan’s Nikkei 225 saw a decline of 0.18 per cent on Monday evening. Apart from this, a decline of 0.08 per cent in S&P/ASX 200 of Australia, 0.67 per cent in S&P/TSX of Canada, 0.72 per cent in Hang Seng, Hong Kong, 4.62 per cent in ATX of Austria, 3.63 per cent in BEL 20 of Belgium and 1.23 per cent in OMXC20 in Denmark was observed today.