Stock Market News: The Nifty 50 on the NSE has declined by more than three percent over the past year. While there are occasional gains, investor confidence has been completely shaken.

Stock Market Falls: After a four-day decline, the stock market failed to break its fifth day on Thursday. The fourth trading day of the week began with a decline. However, the market recovered after a brief period, with the Sensex rising nearly 100 points, and the Nifty also trading at 25,100.

But then at around 1 pm, the 30-share Sensex on BSE fell by 254 points, while Nifty 50 on NSE also came close to 25,000.

A day earlier, on Wednesday, the Sensex fell 386 points to close at 81,716, while the Nifty also fell 113 points to close at 25,057. In terms of losses, investors have lost a significant amount of money so far. The BSE's market cap on September 18th was ₹4,65,73,486.22 crore, but it fell to ₹4,60,56,946.88 crore on September 24th. This means investors have lost ₹5,16,539.34 crore in the last four days alone.

The main reasons for the decline

1. Profit booking

High US tariffs have impacted exports to the Indian market, while increased H1B visa fees have created uncertainty among investors. The rupee is also experiencing a sharp decline against the US dollar. This is why foreign institutional investors are withdrawing funds from the Indian market and booking profits. According to stock market data, foreign institutional investors (FIIs) sold shares worth ₹3,551.19 crore on Tuesday. This is also causing significant pressure on the Indian stock market.

2. Nifty is in bad shape

The Nifty 50 on the NSE has declined by more than three percent over the past year. While there have been occasional gains, investor confidence remains completely shaken. Amid global uncertainties, investors are currently avoiding investing additional funds in the Indian market and remain cautious.

3. Impact of H1B visa fee hike

According to Vinod, Head of Research at Geojit Investments Ltd., Indian domestic markets have seen significant profit-booking following the GST reform. Investors are reassessing valuations and second-quarter earnings expectations. Furthermore, IT stocks underperformed due to the H-1B fee hike, while investors are adopting a cautious stance due to US trade-related statements and weak global cues amid ongoing trade negotiations.

4. Rupee at its lowest level

The Indian rupee has recently experienced a historic decline. It is poised to touch the 89 mark against the dollar and has already reached 88.75. During the current financial year, the Indian currency has depreciated by approximately 5 percent against the US dollar. The weakening rupee is also having a direct impact on the stock market.

5. Rising crude oil prices

Crude oil prices are rising in the international market. Tensions in the Middle East are believed to be a major reason for this. Brent crude has again reached around $70 per barrel, whereas just a few weeks ago, its price was below $66 per barrel.