We have been seeing a steady rise in the stock market since last month and there was almost a feeling of euphoria. However, on Monday morning, the stock market fell. It was quite a surprise for a lot of people on all corners of the market. You might be thinking that why did the market fall today?
“The biggest risk of all is not taking one.”Mellody Hobson
There are many reasons for this:
1) HDFC Bank Result:
a. Negative: The analyst had high hopes from HDFC but this time result seems to be below expectation. Even NII growth was less than expected. We saw a fall in Interest earning Assets.
b. Positive: Like they say that there is light at the end of the tunnel, NPA is very much under control. Growth in loans is very strong.
2) Infosys Results:
a. Negative: Due to high Employee costs, we saw pressure on margins, with that said valuation of Infosys stock is on the higher side under the IT sector.
3) Banking and IT sector:
a. Negative: Banking and IT sector have heavy weightage in Sensex where Banking Sector is up by 38% and IT sector is up by 20%, this causes heavy weightage and can lead to profit booking.
b. Nifty is also very high, where the Banking sector is up by 35% and IT sector is up by 18%.
c. Due to pressure on Banking and IT sectors market is down today.