Reasons for the Fall:
Election Uncertainty: Lower voter turnout in the ongoing general elections has created anxiety among investors. The lack of a clear mandate could impact economic policies.
Foreign Investor Outflows: Foreign Institutional Investors (FIIs) have been selling Indian shares, pulling money out of the market. This can put downward pressure on stock prices.
Muted Corporate Earnings: Q4 earnings for some large companies haven't met expectations, dampening investor sentiment.
Global Market Weakness: Concerns about rising interest rates and a slowdown in the global economy are also affecting Indian stocks.
Rising Oil Prices: Higher oil prices can increase inflation and hurt corporate profits, leading to stock market declines.
What to Expect Until Election Results:
Volatility: The stock market is likely to remain volatile until the election results are announced.
Sectoral Performance: Sectors sensitive to election outcomes, like infrastructure and financials, may be more volatile.
