InvestorQ : Why was the Indian stock market went down today even though there was a rate cut of 25bps?
Sneha Balasubramanian made post

Why was the Indian stock market went down today even though there was a rate cut of 25bps?

Answer
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Roshni Hegde answered.
1 year ago


One of the prime reason for the downfall of the market was Dewan Housing Finance Corporation’s (DHFL) Commercial Paper (CP) by Rating agencies. Investors in the indian market were worried to trade due to the company's default in interest payments on non-convertible debentures.

Yesterday, on June 06, 2019, the fall in Nifty was nearly by 1.48% and Bank Nifty with red by 2.32%. Also, the RBI monetary rate cut by 25bps did not impact the market to rise.

Another major reason in the gloabl market, the downfall in crude oil price. This lead to trade tensions in the global market and weaken trade in the Indian market.

After US President Donald Trump announced about the imposition new tariffs on China goods, many hopes looked forward towards good trade.
While Nifty dropped to around 127 points, to settle below around 11,600-level. It indicates poor trade relations between US and China. But the plummeted Indian benchmark indices is lesser as compared to the global market.
The reason for the sudden fall in the global markets is due to the recent disclosure of trade plannings by US President Donald Trump over doubling the tariff rate on USD 200 billion of Chinese goods.