stock market
A huge fall was recorded in the stock market on the last trading day of the week i.e. Friday. Till the time of writing the news, BSE Sensex was seen trading down by around 859 points and NSE Nifty down by around 240 points. Due to this huge fall in the stock market, investors have lost Rs 3 lakh crore in just 50 minutes. In fact, America has imposed a 10% tariff on goods purchased from India and 16 other countries because forced labor was used in the production of these goods. After this decision of Trump, there has been a sharp decline in the stock market.
Apart from this decision of Trump, there are many other reasons due to which a sharp decline has been recorded in the stock market. Be it the weak quarterly results of big companies or the rising prices of crude oil. Let us know what are the reasons due to which there is chaos in the market.
7 big reasons for huge decline in the market
- Trump’s decision – 10% tariff on goods purchased from India and 16 other countries
- Crude oil price crosses 100 dollars – Brent crude has reached above 100 dollars per barrel. For a big oil importing country like India, this raises concerns about inflation and trade deficit.
- Weak quarterly results – Weak or worse-than-expected results and outlook of some big companies, especially Infosys and IndiGo, weakened investor confidence.
- Weakness of Rupee- Due to weakening of Rupee against Dollar, the concern of foreign investors increased and put pressure on the market.
- Continuous selling by FIIs- Foreign institutional investors (FIIs) are continuously selling Indian shares, due to which there is weakness in the market.
- Weak signals from global markets – Indian markets also remained under pressure due to risk-off sentiment in international markets.
- Concern about US Fed’s interest rates – Due to the tough stance of the US Federal Reserve and the fear of possible rate hike, the fear of capital outflow from emerging markets has increased.
Crude oil crosses 100 dollars
On one hand, a huge decline has been recorded in the stock market, while on the other hand, crude oil has also crossed 100 dollars. In fact, amid increasing geopolitical tension in West Asia, crude oil prices have crossed $ 100 per barrel. There are seven reasons for the decline of the stock market, but the biggest villains are crude oil and Trump’s decision.
