By Admin 
Share Market Crash Reasons: The trend of decline in the Indian stock market continues for three consecutive days. By around 12:30 pm on March 13, BSE Sensex had slipped by 1028.68 points and was trading at the level of 75,005.74. At the same time, a decline was seen in NSE Nifty 50.
Nifty was trading at 23,278.10 points, down 361.05 points. Selling by foreign investors, rising crude oil prices and global cues have spoiled the mood of the market. Let us know, what is the reason behind this decline?
1. Market decline due to rising crude oil prices
The rise in crude oil prices globally has increased the pressure on the stock market. In fact, after the news of attack on two oil tankers by Iran, the possibility of disruption of oil supply through the Strait of Hormuz has increased. Due to this reason, the price of Brent crude in the international market reached around $100 per barrel.
India is largely dependent on imports to meet its energy needs. Due to this situation arising in the Middle East, there is an atmosphere of uncertainty regarding the prices of crude oil. In such a situation, the market trend deteriorated today and a decline was seen in the stock market.
2. Weak signals at global level
The impact of the Iran-Israel dispute is also being seen in the global markets. Talking about other markets in Asia, Japan’s Nikkei 225, China’s SSE Composite and Hong Kong’s Hang Seng index are seeing a decline.
Also, pressure was seen in the American market. Overall, the Indian domestic market declined due to negative signals from the global level.
3. Pressure increased due to selling by foreign investors
Continuous withdrawal of foreign investors is also considered to be a major reason for the decline in the Indian stock market. According to the available data of the exchange, on Thursday, foreign institutional investors (FIIs) sold shares worth about Rs 7,049.87 crore.
Not only this, since the beginning of March, foreign investors have sold a total of more than Rs 39,000 crore. The effect of this large-scale withdrawal is clearly visible on the market movements.
4. Rupee weak against dollar
The pressure on the rupee is clearly visible in the currency ring. On Friday, the Indian currency fell by 12 paise to reach the level of 92.37 against the dollar. Which is considered to be one of the lowest levels ever. Market experts say that due to high prices of crude oil, continuous selling by foreign investors and strong dollar, there is pressure on the rupee.
When the rupee weakens, imports become expensive, due to which the possibility of inflation increasing also increases. Which has a direct impact on people’s pockets.
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