Stock markets ralyy: After the last trading week, a brilliant enthusiasm was seen in the Dalal Street on Monday. The Sensex showed a tremendous jump in early trade and the BSE Sensex gained 1008.25 points at around 12.20 pm to 80,220.78. Whereas, the Nifty 50 also climbed 291.80 points to 24,331.30.

In such a situation, let us know that when there was a decline in the market on Thursday and Friday last week after the incident of Pahalgam, despite geopolitical tension, Somwa has had some reason for this increase in the Indian stock market:

Reliance and Banking Stocks boom

Great weight stocks like Reliance Industries, Sun Pharma, Axis Bank shares were a major reason for the boom in the stock market. Along with this, the boom in shares of major banking and financial services companies also excited the stock market.

Reliance’s fabulous results were welcomed by investors brilliantly and after that the stock jumped about 4 percent. Whereas, ICICI Bank, Axis Bank and SBI shares showed an increase of about 2 percent.

Market flexibility

Dr. VK Vijay Kumar, Chief Investment Strategist of Jijit Financial Services, said that the Indian markets have shown remarkable flexibility amidst increasing global uncertainty. He admitted that the growing tension between India and Pakistan is likely to put pressure on the market. However, he emphasized that historically the markets have a strong ability to overcome and grow even after facing many concerns and challenges.

Investment in equity markets

Domestic investors invested Rs 17,425 crore in equity markets of the country last week. This happened due to favorable global signals and strong domestic comprehensive economic indicators. Earlier, in the week ended April 18, FPI had invested a net investment of Rs 8,500 crore. Globally, stable performance in major markets, the US Federal Reserve estimated to prevent increase in interest rates and stable US dollars strengthened Indian markets.

Himanshu Srivastava, joint director of the Morningstar Investment, said that the global trade tension further improved the perception of investors. At the domestic level, India’s relatively better older probability, softening in inflation and normal monsoon estimates increased the market confidence in investors.

Also read: Indian rupee showed power among weakened US dollars, the strongest in two years

Stock Market Crash: The Indian stock market has seen a big decline after the initial lead on Friday, 25 April, on the last trading day of the week. The centers fell about one thousand points to a level of 78,800, while on the other hand the Nifty slipped 335 points to reach the level of 23,908. Due to this decline in the market, there is a possibility of heavy loss of about Rs 10 lakh crore.

However, talking about the global stock market, the stock markets from America to Japan saw strength. In such a situation, the question is arising that what was the reason behind such a decline in the Indian market, let us know in these three points-

1. Increased tension in India

On 22 April, Indian tourists were targeted and attacked in Pahalgam in Jammu and Kashmir. This was such a big incident in the last 2 decades, when 26 people were killed in this way. The Central Government also called an all -party meeting on this matter on Thursday. The security agency has found its direct connection from across the border in its investigation. After this, the way India has announced to break the Indus Water Treaty by taking action. This is the first time India has officially stopped the Indus Water Treaty despite many years of political tension and conflict between the two countries. In such a situation, the question arises that what is this Indus water will be used? In fact, the Indus Water Treaty was signed after years of talks between India and Pakistan in 1960 and the World Bank served as an intermediary. It has had a negative impact in the market of both countries.

This is the first time that India did not take such a step despite fighting for so many years, which has been taken this time. India has officially prevented the Indus Water Treaty despite many years of political tension and conflict between the two countries. In such a situation, the question arises that what is this Indus water will be used? In fact, the Indus Water Treaty was signed after years of talks between India and Pakistan in 1960 and the World Bank served as an intermediary.

A day ago in Pakistan, on Thursday, the Karachi Stock Exchange saw a decline of more than 2 thousand points. Here, on the other hand, Pakistan has also retaliated and announced to ban all kinds of business with India. Due to this fear among investors, the stock market has crashed in this way.

2. Trend of foreign investors

Another reason for the decline in the stock market is that the results of the March quarter have started coming and the results of many companies have not been expected as the market. Because of this, where their shares are slipping, on the other hand, foreign investors are also seen changing their strategy and are withdrawing money from the market. Because of this, this situation of the market is visible today.

3. Profit booking

Apart from this, one of the reasons for the market collapse is that the Indian stock market saw a rise of seven consecutive days till April 23. After that the market was sluggish on 24 April. In such a situation, many investors are now trying to buy profits at this high level, due to which there is a decline in the stock market. Talking about global markets, Wall Street saw a great lead. This gave positive indications in Asian markets. South Korea’s shares saw a jump. While Nikkei of Japan climbed up 1.23 percent, South Korea’s cospie slipped down 0.63 percent.

S&P increased by 2.03%. Nasdaq composite 2.74 percent, while Dou Jones climbed up with 1.23 percent. According to reports, Federal Reserve officials say that if there is clear evidence about the direction of Economy, they can consider cuts in rates early in June. The Taiwan market was trading at a level of 19,880.39 over 2% while Hangseng was trading at a level of 22,256.11 with a rise of 1.55%.

Also read: Sensex hit 30 points amidst strength in global market, Nifty crossed 24,300