The recent decline in BSE share prices can be attributed to several factors affecting both domestic and global markets. Here’s a detailed breakdown:

Key Reasons for the Decline
1. Global Market Weakness
– The Indian stock market has been impacted by rising US Treasury yields, which have reached their highest levels in 18 months.
– A downgrade of the US credit rating by Moody’s has led to increased caution among investors, affecting global liquidity.
– The weak performance of US bonds has triggered sell-offs in Asian markets, including India.

2. Institutional Selling Pressure
– Foreign Institutional Investors (FIIs) have turned net sellers, withdrawing significant funds from Indian equities.
– Domestic Institutional Investors (DIIs) have also reduced their holdings, leading to a synchronized sell-off.

3. Profit Booking After Recent Rally
– The Indian stock market had seen a strong rally in previous weeks, leading to **overbought conditions**.
– Investors are now booking profits, causing a temporary correction in stock prices.

4. Sector-Specific Challenges
– Major stocks like HDFC Bank, Reliance Industries, and ICICI Bank have seen declines, dragging the indices lower.
– The National Stock Exchange (NSE) changed the expiry schedule for Futures & Options (F&O) contracts, leading to volatility in BSE stocks.
– Goldman Sachs lowered its target price for BSE, citing regulatory risks and industry-wide volume reductions.

Market Outlook
While the decline is concerning, experts suggest that this correction is **temporary** and could stabilize once global uncertainties ease. Investors are advised to monitor **US fiscal policies, bond yields, and institutional investment trends** to gauge future market movements.

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