Share Market crash

 Investors lost about 9 lakh crore today due to week global cues .Indian stock market indices nosedived breaking 17000 a crucial level of nifty50 closed after some corrections upside with 17149 on 24 jan according to nse indices data .

Five factors that affected market sentiments are as follows:

1-Overvalution of tech companies

   A  Recent surge in tech companies like tesla , microsoft ,wipro ,HCL tech ,etc have overvalued them. Now we have seen that specially from 4-5 five days these stock plunged 15-20% a correction which should be for betterment of any company because high and overvalued firms doesn't  always meets with investors expections of high returns and always piles up pressure on companies management.

2- US federal reserve likely to increase interest rates due to rising inflation.

 To curb the rising inflation fed likely to increase interest rates so investors are looking cautious  ahead of FOMC meeting which is scheduled on 25-26 jan ....why investors feared ? Its only because after interest rates rise investors will move to gov. Bonds and also will move forward to banks and this will lose the sentiment of market as well

3-Rising tension btw Ukraine and Russia

Tensions is rising between Ukraine and Russia on their geopolitical issues..the war like situation have been building up ...russian market has seen a biggest correction todays due uncertainty hiking with russia and Ukraine strategic relationship.

4-Increasing number of cases of covid 19

Pandemic which we all are forgetting  is still going on so we can't ignore it ... third wave is running on its peak everyday we have seen a surge in number of infected persons ..new varient omicron is also spreading with high infectious rate ..the only thing is relaxing is its low mortality rate.

5-Uncertainity with Budget session

Indians investors are looking cautious ahead of its budget due to uncertainty with budget as expections are high with gov. Policy to counter inflation .procrastination on privatization is major concerns because gov. has already made provisions in the previous budget regarding privatization of some psu but due to slow pace of its implementation investors keep an close eye on it..and with norms and policies changes feared investors.


#stockmarketcrash #marketcrash #nifty50 #banknifty





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