Investors in stock market are worried as Sensex and Nifty are falling every day for the past sometime now.
Investors are also curious to know as to why the Sensex and Nifty 50 are falling every day that has wiped out over Rs 10 lakh crore during the past some time. The downward trend of the stock market started with Iran launching a missile attack on Israel weeks ago after which there is a threat of retaliation by the latter.
While the middle-east is facing its own trouble, the long continuing Russia-Ukarina war is also a reason behind the fall in Sensex. Many experts link the geopolitical factors including Iran-Israel and Russia-Ukraine tensions with the global markets. Due to the wars many trades are hit in different zones of the world which has caused international markets to face a fall.
However some of the local Indian factors are also behind the markets going down and anxiety of people going up. A lot of people these days invest in stock market in form of shares and mutual funds. The Reserve Bank of India has also expressed concerns after the Fixed Deposits in banks fell while the investment mutual funds went up manifold in the country. The heavy investment by middle class in mutual funds was a reason behind Sensex and Nifty surging.
However coming to the local factors behind the fall of stock market, most of the Indian companies in quarter 2 had weak earnings which also started the cycle of a crash in markets.
Another factor which the experts suggest could be the reason behind fall of stock market is Foreign Portfolio Investors (FPIs) withdrawing from the Indian market and going to Chinese due to the cheaper valuation of companies there. This reason is a major cause of worry for the finance sector of the country as the FPIs contribute a major chunk of funding in the Indian markets.