The Indian Stock Market on Friday witnessed a fall after the market opened. As a result, 'Friday the 13th' started buzzing on social media with netizens mentioning the 'western superstition' that may have contributed to it. For the unversed, Friday the 13th is considered an unlucky day in Western superstition. On Friday the 13th i.e. on December 13, the Indian stock market witnessed a sharp selloff across segments. It leads to a decline of over 1 percent in the frontline indices, Sensex and Nifty 50. Midcap and smallcap indices were hit harder, falling nearly 2 percent each during intraday trading.
Indian Stock Market Fall on December 13
As per reports, Sensex is trading below 80,300, down 1000 points or 1.30 percent, while Nifty50, it is down 278 points to 24,270. At the same time, Nifty Bank is trading at 52532 level, down 783 points. At the same time, a sharp decline continues in midcap, small-cap, and other indices.
Out of the top 30 stocks of BSE Sensex, 29 stocks are on the decline, while only 1 stock is seeing a slight rise. Shares of Bharti Airtel have climbed up to about 1 percent. At the same time, the biggest decline is being seen in Tata Steel, JSW Steel, and IndusInd Bank. Apart from this, among heavyweight stocks, shares of Reliance Industries have fallen by 1.33 percent. Stocks like SBI, HDFC Bank, ITC, and Titan have also fallen by 1 percent.
Is Friday the 13th a factor in Stock Market's downfall?
The answer is no. It is a mere coincidence that the Indian stock market is witnessing a fall on such a date. As mentioned above, the Indian Stock market has been witnessing a fall from the last few days. Hence, Friday the 13th is not a factor.
The major reason for the fall in the stock market today is profit booking. Apart from this, signs from the global market are also not good. Shares of some heavyweight shares like Reliance and Titan have also fallen by more than 1 percent. Apart from this, pressure is also increasing on HDFC Bank shares. Another reason for the fall in the Indian stock market is the trend of foreign investors moving towards China after the economic package announcement in China. At the same time, the effect of the strengthening of the US dollar is also visible in the stock market.
As per Reuters, longer-dated treasury yields were heading for their biggest weekly rise this year. Stronger dollar and bond yields trigger foreign capital outflow from emerging markets like India. Hence, this is also another factor.
One more reason that is contributing to the fall of Indian Stock Market are 'FIIs'. To be precise, after buying Indian equities in the initial few days this month, foreign institutional investors (FIIs) have again started selling in the Indian market. In the last two days, FIIs have taken away over Rs 4,500 crore in the cash segment in the last two sessions from the Indian market. Rising US dollar, bond yields, uncertainty surrounding the US Fed rate cuts, and stretched valuation of the Indian stock market are the key reasons behind the foreign capital outflow.