On Thursday, the Indian stock market witnessed a continuous decline. The BSE Sensex closed at 77,580.31 points with a fall of 110 points. The main reason for this decline is said to be selling by foreign investors, rising inflation, and weak quarterly results of companies.

Sell-off effect

Foreign institutional investors (FIIs) withdrew a large amount of money from the market. On Wednesday, they sold shares worth Rs 2,502.58 crore, which increased the pressure on the market. However, domestic institutional investors (DIIs) bought shares worth Rs 6,145.24 crore, which is providing some support to the market.

Inflation figures are a cause for concern.

Inflation in India is constantly rising, which has become a major concern for investors. Retail inflation reached 6.21 percent in the month of October, which is the highest level in the last 14 months. This is more than the satisfactory level of the Reserve Bank of India (2-6 percent). Due to this rising inflation, there is instability in the market.

Sensex and Nifty fell.

Most of the 30 major stocks of BSE Sensex were at a loss. Especially the shares of Hindustan Unilever, NTPC, Tata Motors, and Adani Ports fell sharply. At the same time, some stocks like Reliance Industries, Kotak Mahindra Bank, and HDFC Bank saw a slight rise.

The National Stock Exchange's Nifty also closed at 23,532.70 points with a fall of 26.35 points. This was the sixth consecutive day when the Nifty witnessed a decline.

Mixed trends in global markets too

In the Asian markets, Japan's Nikkei, China's Shanghai Composite, and Hong Kong's Hang Seng were in losses, while South Korea's Kospi market was in gains. A positive trend was seen in the European markets. The US markets had a mixed trend on Wednesday.

The Indian stock market is under pressure due to inflation, foreign selling, and weak quarterly results of companies. However, there is some relief due to the support of domestic investors and stability in global markets. The direction of the market in the coming days will depend on inflation and global developments.