Indian Stock Market Crashed Due To China Covid-19 Recession Fear And Global Stock Market Fall MarketGyani.com
Stock Market Crash: It was expected that despite the fall in the stock markets around the world in 2022, the way the Sensex Nifty has touched new heights, investors have earned tremendously despite the difficult conditions, in such a situation, farewell to 2022 with a great boom in the stock market. will be given. But this hope remained grounded. On Wednesday, December 22, as soon as the news came that India’s Health Minister is going to hold a meeting in view of the growing outbreak of Corona in China, the stock market took a U-turn and for the last three days, a big decline was seen in the market.
Big fall in four days
Sensex 1000 and Nifty slipped below more than 300 points in the storm of decline on Friday. Sensex has fallen by 2000 points in the last four days, while Nifty has slipped by 580 points. Investors have lost Rs 15 lakh crore in the last four trading sessions. But the question arises whether this decline in the market has happened only because of the news of Kovid or the reason for this decline is more than Kovid?
Kovid is in the mind
Kishore Ostwal of CNI Research says that Kovid is in our mind and not in America, China, Japan or Korea which we are scared of. He said that the ups and downs in the market are part of the plan. But Nifty’s journey to 19400 is fixed. He said that whenever the feel good factor starts working in the market, the fear index explodes.
Let us look at the reasons for the fall of the market.
Recession in America-Europe
The talk of recession is constantly coming to the fore in America and Europe. To curb inflation in America, the Fed Reserve is increasing the interest rates and if this continues, there may be a partial recession. If this happens, it is bound to have an impact on the Indian economy. Our exports will decrease, the proof of which is known from the decline in IT shares. Despite these concerns, the Indian stock market continued to rally. But now the Indian market is reacting to these negative news.
worry of covid
The new variant of Kovid is again troubling investors. Corona cases are increasing in China. Japan, South Korea are also affected by this. If air travel is on, then the risk of spreading infection in India is increasing. If this happens, many types of restrictions can be imposed on different sectors from travel, due to which the market is witnessing a decline.
inflation in japan
Inflation in Japan has reached the highest level in 40 years in November. Due to which there is a decline in the market there, then due to the signals of strict monetary policy from the Central Bank of Japan, the market is also disappointed.
Christmas and New Years holiday
Every year on Christmas and New Year, investors go on vacation. In such a situation, there is a tremendous decline in the volume in the market. In 2022, when there has been a tremendous boom in the market, investors want to take their profits home. That’s why they are busy in making profits. That’s why the market is seeing a decline.