The benchmark equity index has changed negatively for calendar years and moves below their 50-day moving average on February 7.

Nifty 50 and BSE-Sensex also moved below the highest made by them on the announcement of the Union budget for 2022-23 weeks ago, reflecting the weakening of sentiment among investors.

In the derivative segment, traders add a short position in the February index contract as open interest soaring more than 7 percent. The Nifty 50 index fell 228 points, or 1.3 percent, at 17,301.7, while BSE-Sensex was at 57,988, down 1.1 percent or 656.8 points.

“It (Nifty 50) will now need a break above 17,580 to instill confidence in excellence, but we will watch the 17420-380 region for the emergence of the initial hunt for bargaining,” said Anand James, head of the Geojit financial strategy.

Let’s look at the factors that experience sentiment in Dalal Street:

1 crude oil near $ 100-mark

Rally in global crude oil prices showed no signs of intersection after Brent almost touched a $ 94 per barrel in previous Asian trade. Commodities have increased by more than 14 percent in the past month and are expected to continue climbing towards the $ 100 sign in the coming weeks. The price of crude oil which has soared negatively for the Indian economy because it is increasingly jeopardizing the demand of fragile consumers who are currently visible and emphasizing the reserves of Bank India to tighten monetary policy on one click inflation.

2 five rising US interest rates on the table

Data on non-agricultural payroll in the US on Friday was put into bed every hope of investors that the US Federal Reserve might be easy on this year’s interest rate hike. The US added more than 467,000 jobs in December, a month affected by the dissemination of the Omicron variant, which is much higher than those written by economists. Strong job market data LED traders to increase US interest rate betting this year including the possibility of a 50 basis point increase in the March monetary policy meeting.

3 Sell FII without stopping

Just like rally in global crude oil prices, sales pressure from foreign portfolio investors is unrelenting. Foreign investors have clean domestic stocks sold near RS 37,000 Crore so far in 2022 when they continue to flock to other emerging markets that present a better multiple assessment. The expectation of the increase in aggressive level by the US has forced the FPI to attract the capital of the Indian stock market which is given is expensive compared to other developing market economies and several advanced markets.

4 market leaders understand sample technology

The rally in the domestic stock market for the past year was mostly driven by child posters from this Bull Market – information technology company. This sector has lost a big momentum in 2022 with an IT nifty index more than 10 percent below recently. Selling-offs in global technology stocks have had a friction effect on space due to sales from foreign investors.