Share Market: A few days before Diwali, the movement of the stock market has started to falter and is still not able to recover. There are many reasons for the fall of the stock market. About which we are going to tell you today.
Along with this, we will tell you what is stock market crash and what are the reasons behind it. We will tell about this also here. After which you will not have confusion in terms like decline in stock market and stock market crash.
stock market decline
In the stock market, when Sensex and Nifty fall by 200 to 300 points, it is called a fall of the stock market. Generally this decline occurs due to such news which are not in favor of the market.
Reason for decline in stock market
There are many reasons for the decline in the stock market. Let us tell you that the stock markets of America, Europe and Asia have a lot of influence on BSE and NSE. If for some reason the shares fall in these markets, then a decline is seen in SENSEX and NIFTY in India too.
At the same time, when the interest rates are increased by the Federal Reserve in America, it also causes a decline in the market. Apart from this, geo-politics and increase or decrease in the price of crude oil also affect the stock market.
What is stock market crash?
There is a huge fall in the stock market crash, due to which investors lose lakhs of crores of rupees. In 2008, stock markets around the world crashed due to the Lehman Brothers Bank Crisis in America. Whereas in 2020, due to the Covid epidemic, the Sensex had dropped from 40 thousand to 26 thousand points.
Apart from this, sometimes the stock market crashes due to profit booking by investors. Also, when foreign investors withdraw their investments from the stock market due to war, terrorist attack or any other reason, the market may crash.