The Indian stock market closed down on Friday, the Sensex fell over 720 points and the Nifty 50 index fell below the 24,850 level. Between the global signals and widespread concerns over the activities of foreign investors, the selling was led in financial shares, especially Bajaj Finance,. The 30 -share BSE Sensex fell 721 points or 0.88% to close at 81,463, while comprehensive NSE Nifty fell 225 points or 0.90% to close at 24,837. The total market capitalization of companies listed in BSE declined by Rs 6.5 lakh crore to Rs 451.6 lakh crore.

Also read: Stock Market Crash: Disappointment in the market even after FTA deal! Sessenx reached 650 points and Nifty rose 200 points to 24,840

According to Economics Times, there are five major reasons for the decline in the market today:

1. Pressure on financial shares after Bajaj Finance results

The financial sector pulled the market down, the Nifty Financial Services Index fell more than 0.9%. Bajaj Finance and Bajaj led to a decline in Finserv, which fell 4.7% and 2.3% respectively, as there were concerns about asset quality in the MSME sector despite the strong income of the first quarter, despite the strong income of the first quarter.

2. Uncertainty on America-India Trade Agreement

Uncertainty over the possible interim trade agreement between India and the US has also affected the notion of investors. With Washington’s August 1 deadline coming close, negotiations on the fees on agriculture and dairy products are still stalled.

3. FII continuous selling

Foreign institutional investors (FIIs) have been selling pure in recent sessions, and in the last four business days they have sold Rs 11,572 crore in Indian shares.

4. India-Britain Trade Agreement

India and Britain on Thursday signed a much awaited free trade agreement (FTA) during Prime Minister Narendra Modi’s visit to London. Although this agreement is expected to benefit areas such as textile, whiskey and automobiles, to benefit from tariff deficiency, analysts believe that this agreement is unlikely to increase the market with this agreement without clarity on business talks with the US.

Also read: Bazaar capitalization of eight out of Sensex’s top 10 companies decreased by Rs 2.07 lakh crore

5. Weak global signal

The Asian markets declined on Friday due to profits by investors before an important week. Japan’s Nikkei recorded 0.8% from a record height, while Hong Kong’s Hang Seng came down 1.1% and Australia’s ASX 200 0.5%. The mainland Chinese index also fell.