Stock Market Crash: These are the 5 major reasons for the stock market crash today, what next? Know here

There has been a sell-off all around in the stock market. By 11 am, the Sensex has fallen by 1,427.09 points to reach 78,297.02 points. At the same time, NSE Nifty is trading at 23,843.90 points with a huge drop of 460.45 points. Due to this big fall in the market, investors have lost about 4 lakh crores to date. At the same time, investors have lost about 30 lakh crores in October as well. In such a situation, let us know where this fall in the stock market will stop and what is the reason for this fall. 

Reasons for the fall in Sensex and Nifty50 

1. The upcoming US presidential election between Kamala Harris and Donald Trump has created uncertainty. The election results may affect the policies of the US Federal Reserve and subsequently affect Indian interest rates. The US presidential election results are expected on November 6. According to Dr. V.K. Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, the markets globally will be focused on the US presidential elections in the next few days and there may be volatility in the near term in response to the election results. Hence, the market is witnessing a big decline today. 
2.  The Federal Reserve’s monetary policy meeting is on November 7. This meeting has increased uncertainty in the market because the expectation of a possible reduction in interest rates can affect the behavior of investors. Its effect is also being seen in the Indian market today. 
3.  Weaker-than-expected company results in Q2 have also dragged down the market. Q2 results indicate that Nifty EPS growth could drop below 10% in FY25, making it difficult to sustain current valuations of around 24 times FY25 estimated earnings.
4.  Foreign investors have been selling heavily in the Indian market for the last month. Its effect is clearly visible on the stock. Indian markets have fallen rapidly. On the other hand, foreign investors are withdrawing money from here and investing it in the Chinese market, due to which the stock market there has seen a rise. 
5. Oil prices rose more than $1 on Monday after OPEC+ postponed production hikes in December. Brent futures rose $1.18 (1.61%) to $74.28 a barrel, while WTI crude rose $1.20 (1.73%) to $70.69. OPEC+ postponed its planned 180,000 bpd hike due to weak demand and increased non-OPEC+ supply. This also affected the Indian market today. 

All these reasons have led to selling in the Indian market. This has led to a market crash. Now the big question is what next? Market experts say that Nifty has a strong support level of 23,500. If the market breaks down and reaches 23,500, then recovery can be seen from there. Experts say that it would be better for market investors to sit aside and watch the show. Now is not the right time to invest money or trade.