By Admin 
Share Market Crash Reason: The Indian stock market is in full swing on the day of Holi. A sharp decline is being seen in the major benchmark indices BSE Sensex and NSE Nifty 50. At around 1:15 pm, Sensex was trading at 78,966.20, down 1272 points.
Whereas Nifty slipped by 1.77 percent and continued trading at the level of 24,424.65. This decline in the domestic market has continued for the last two trading days. Investors have suffered huge losses due to the huge fall. Let us know, what is the reason behind this decline?
1. Situation arising in West Asia
There is an atmosphere of uncertainty at the global level regarding the Iran-Israel war. The clear effect of which is visible on the Indian market. The joint military action by America and Iran and Iran’s retaliatory attacks have broken the confidence of investors.
Amidst all this, Iran has decided to close the Strait of Hormuz. Due to which clouds of apprehension are looming over oil imports. The effect of increase in crude oil prices is now clearly visible in other oil importing countries including India. Experts believe that if the war continues for a long time, the price of crude oil may skyrocket. This is one of the main reasons behind the decline in the market.
2. Selling pressure in markets from Asia to America
Asian markets witnessed a decline for the third consecutive trading day today. Japan’s Topix index fell more than 4 percent. While Hong Kong’s Hang Seng index fell by more than 2 percent. South Korea’s stock market also fell by about 11 percent. Due to which nervousness increased among investors.
The trend of weakness continued in America also. Dow Jones closed down 403 points. At the same time, S&P 500 recorded a decline of 0.9 percent and Nasdaq also closed with a slip of 1 percent. Overall, due to weak signals from global markets, Indian markets also turned red like tomatoes.
3. Rise in India VIX
India VIX, the volatility index that measures stock market movements, jumped by almost 14 percent today to reach the level of 19.51. This rise is an indication that the atmosphere of uncertainty is deepening in the market.
Traders are adopting a cautious stance regarding geopolitical tensions and rising crude oil prices. The current situation has increased the concern of investors, due to which fluctuations and instability in the market have increased.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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