Key reasons why India's stock market is falling

Zee Media Bureau

The benchmark Sensex extended losses to a sixth straight session Wednesday by taking a hit of 274.28 points. The NSE Nifty also cracked below the 7,700-mark.

The 30-share Sensex fell 274.28 points or 1.08 percent to close at 25,036.05, its weakest closing since September 7. During the day, it hovered between 25,012.22 and 25,316.95. The index has now lost 1,133.36 points in six sessions.

The broader NSE Nifty went below its crucial level of 7,700-mark by tumbling 89.20 points or 1.16 percent to close at 7,612.50.

Here are the key reasons behind India's stock market ongoing fall:

Muted trend in global markets: Asian stocks traded negative as China's struggled with its latest consumer price inflation data leading to further slowdown. Key indices in Asia, like China rose 0.07 percent while, Hong Kong, Japan, South Korea, Singapore and Taiwan moved down between 0.04 per cent and 1.37 percent. Europe was also down with indices in France and Germany falling by 0.43 percent 0.74 percent, respectively.

Delay in the key tax reform: Investors grew increasingly worried about a possible delay in the key tax reform bill.Logjam in Parliament is creating a hiccup in the Indian market since GST is expected to be passed in the Winter Session.

Now, investors mind lingered in a state of uncertainty as the Parliament business was hurt for a second day with the Opposition, Congress, holding noisy protests on the National Herald Case.

Persistent foreign fund outflows: Participants also blamed the foreign investors, who are continuously reducing their exposure in emerging markets in a run up to the first interest hike by the US Federal Reserve in nearly a decade.