Today, the stock market took a big hit. The Sensex went down by 644 points, and the Nifty dropped below 24,650. Here’s what caused it:
U.S. Government Bonds Got More Attractive
When U.S. government bonds offer better returns, investors move their money there because it feels safer. This means they take money out of markets like India, which causes prices to fall.Worries About U.S. Debt
There’s concern that the U.S. is borrowing too much and might struggle to pay it back. This uncertainty makes investors nervous everywhere, including here.Not Many Buyers for U.S. Bonds
Recently, when the U.S. tried to sell long-term bonds, fewer people wanted to buy them. This made things unstable and pushed bond rates up, affecting markets worldwide.The Market Needed a Break
After weeks of rising prices, some investors decided to take profits today. This kind of pause or drop after a good run is pretty normal.
Also, big companies in the auto and tech sectors saw their shares fall, pulling the market down further.
In short, a mix of global worries and local selling caused the market to dip today. But these ups and downs are part of how markets work.