Why Share Market is Down Today: Today, as soon as the market opened on the first day of the week, there was such a decline that the Sensex fell by 1,819 points in no time. By 11:00 am, ₹13 lakh crore of those who had invested money in the market was completely wiped out. In this 'tsunami' of the market, shares of big giants like Tata Steel, SBI and HDFC Bank have also fallen by 2-3%. If you are also wondering why there is a big decline in the market, then know here 5 solid reasons...
The biggest fear in the markets around the world right now is about the ongoing war between Iran, America and Israel. The dispute deepened over the weekend and there were signs that the war would last longer, creating an atmosphere of fear among investors. In such circumstances, investors withdrew their money from the market.
The route through which 20% of the world's crude oil comes (the Strait of Hormuz), where increasing corrosion has created a threat of stopping the oil supply. For this reason, Brent crude has crossed $ 113 per barrel. India buys most of the oil it needs from outside, so oil becoming expensive means inflation increasing and the market falling.
On one hand the stock market is falling, on the other hand the Indian rupee is also dying. Today the rupee fell to a record low of 93.84. Due to weak rupee, foreign investors are withdrawing their money from India, due to which the selling in the market has intensified.
Another bad news for the common man is that the government oil companies have increased the prices of industrial diesel by a huge 25% (about Rs 22 per liter). This will have a direct impact on the logistics, infrastructure and manufacturing sectors, which will reduce the profits of companies. Due to this fear, shares of these sectors crashed today.
Foreign institutional investors (FIIs) are continuously withdrawing their money from the Indian market. Due to increasing bond yields in America, they are finding it safer to invest money there. Foreign investors have been continuously selling in March and have withdrawn a total of Rs 90,152 crore till March 20. When big players exit the market, it becomes difficult for small investors to survive.
Disclaimer: This article has been written only for information and awareness purposes. The information given here is not investment advice. Investing in the stock market is subject to risk. Before taking any decision related to any stock, mutual fund or other investment, please consult your financial advisor or market expert.
