
Learn_With_Arihant
February 10, 2025 at 07:48 AM
Why is the Stock Market Falling Despite a Rate Cut?
📉 Key Reasons:
1️⃣ Global Market Weakness – FIIs may withdraw funds due to US Fed policy, geopolitical risks, or global slowdown.
2️⃣ Rupee Depreciation – A weaker INR leads to FII outflows, impacting market sentiment.
3️⃣ Inflation Concerns – Rate cuts can fuel inflation, making investors cautious.
4️⃣ Profit Booking – Markets may have already priced in the cut, leading to post-announcement selling.
5️⃣ Weak Corporate Earnings – Poor results overshadow rate cut benefits.
6️⃣ Banking Sector Impact – Lower rates reduce Net Interest Margins (NIM) for banks.
7️⃣ Slowdown Fears – A rate cut may signal economic weakness, worrying investors.
💡 Conclusion: A rate cut alone isn’t enough—global factors, inflation, and earnings drive market trends. 🚀
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