US Impact On Share Market: There are many reasons behind the big fall in the stock market on Monday. Among them, the recession in America has the biggest role. Apart from this, the effect of increasing tension between Israel-Iran is also visible on the markets.
The stock market fell sharply on Monday and there was an outcry among investors. The Bombay Stock Exchange’s 30-share Sensex was trading up to 2600 points, while the National Stock Exchange’s Nifty was trading by more than 700 points. The turmoil in the US is being cited as the reason for this decline in the stock market. Let us understand in 5 points what has happened in the US, due to which the Indian stock market was shattered?
Investors get Rs 18 lakh crore!
First of all, let’s talk about the latest situation of the stock market, then let us know that the BSE Sensex opened with a fall of about 1300 points and on seeing it, it slipped more than 2400 points to the day’s low of 78,295.86. On the other hand, the Nifty also fell by 720 points to break below the 24,000 level to 23,893.70 level. Due to the stock market crash, the amount of about Rs 17 lakh crore of investors was cleared in shock. The BSE MCap declined to Rs 440 lakh crore from Rs 457.16 lakh crore last Friday.
Not only the
Indian stock market but also the foreign markets have caused huge devastation. There has been a big decline in the stock markets from America to Japan. The Japan stock market fell by 10 percent.This is the biggest decline in nearly 3 decades in Japan. On the other hand, the Dow Jones slipped 1.51 percent, while the Nasdaq Composite fell a big 2.43 percent.
hat happened in America?
Now let’s talk about what has happened in America, due to which the Indian stock market is looking shocked. So let us know that after the fear of recession in the US, there was a big loss in the market on Friday, on the other hand, in addition to the delay in the policy rate cut in the US, strong selling in AI and chip stocks was also one of the major reasons for the decline. The impact of this stir especially in the US is visible in markets around the world including India.
With the recession in the US, these 5 big reasons for the fall in the market …
The first reason – the unemployment rate in the US reached a 3-year high. The unemployment rate in the US has reached 4.3 percent, which is the largest unemployment figure in the US since October 2021.
Second reason- There has been a big decrease in manufacturing PMI data in the US. The US manufacturing PMI fell to an eight-month low in July due to a decrease in new orders. According to the Institute for Supply Management (ISM), it fell to 46.8 in July, the lowest reading since November, compared to 48.5 in June.
Third reason – there is an atmosphere of layoffs in American IT companies. There has been a stir in many big companies and the global IT sector remains under pressure due to the announcement of layoffs in the IT sector.
Fourth reason- The Japanese currency Yen has seen strength against the US dollar. In such a situation, the risk of ending the Yen Carry Trade in the Japan has not only increased, but it has also deepened the possibility of increasing selling.
Fifth reason- Apart from all these reasons, global tension is also seen to be affecting the stock markets around the world. This includes the possibility of increasing tensions between Israel, Hamas and Iran.
(Note- Before making any investment in the stock market, please consult your market experts.)