On the expected line today 30 stocks Indian Benchmark Index Sensex fell below the 16,000 level again after rising yesterday. The market started with sharp rise followed by sharp falls. The Sensex has fallen by 1.5%. Following the BSE Sensex, wide based NSE Nifty also fell by 1.4% in the early hours of trading.
The volatility in the market continues to shake the confidence of the investors in the equities as other equities investments such as mutual funds and ULIPs. The risk of losing money has increased because of high volatility.
On the negative cues from international markets such as the US and derivatives market, weak rupee and lack of confidence as well as the upward inflationary pressure because of weak rupee are said to be the main reasons for this volatility in Indian stock markets.
Also the ambiguity and uncertainty in the US as well as the European Union are making situation worse for the equities markets across the world. The storms as well as common man’s resentments against the governments across the globe too are hampering and having negative impact on the confidence of the investors.