Nifty 50 fell by 1.20% and Sensex by over 1.25% as shares fell on rising Treasury yields and inflation

stock market

Yesterday there was a sharp fall in the Indian stock market in the second half and both the benchmark indices Nifty and Sensex were down more than 1.2%. Even today till 2 pm Nifty50 was down 1.20% and Sensex was down 1.25%.

Why is the stock market going down

The US 10-year G sec yield is at around 1.87, the highest level since the pandemic. This is because inflation is rising very rapidly and is at record levels, so to control inflation, the US fed interest rate may increase before the expectation.

And so the 10-year bond yield is rising.

Why inflation is increasing? That is because crude oil prices are also at record levels, crude oil prices have crossed more than $ 85.98 per barrel.

Crude oil is a commodity on which almost all economic activity and industries depend, so a rise in the price of crude oil leads to an increase in prices of goods and services and increase inflation.

So this was the major reason which the market is going down. If we consider rising inflation and 10-year bond yield, then there is a possibility that such corrections will happen in the market in the coming times.

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