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Share Market Crash: The Indian stock market recorded a huge decline in the afternoon trading session on Thursday. Both Sensex and Nifty rolled. Due to the rise in the US bond yield, the decline in the stock markets there, the deteriorating economic status of the US and the weak signs being received from the global markets are being held. In addition, last week the global rating agency Moody’s reduced the US credit rating.
Why is the atmosphere of fear among investors?
Actually, the rapidly investors in the bond yield are now afraid of rising interest rate because if interest rates increase, borrowing for companies will be expensive. This will stop many projects. As a result, the economy may be vulnerable to recession. Another reason for concern among investors is Trump’s tax policy.
The congressional Budget Office (CBO) said on Tuesday that Trump’s tax policy would increase the loan by about 3.8 trillion dollars. In fact, Trump’s ‘One Big Beautiful Bill Act’ includes pursuing tax cuts of 2017, tax exemption on overtime, tips and auto loans, increasing child tax credit by $ 2,500, temporary increase of $ 2,000 in standard deductions and ending plans to eliminate the clean energy tax credit of Bidan administration. Nevertheless, experts believe that this will increase the national debt by 3 to 5 trillion dollars.
The effect of these things on the stock market also
According to Reuters report, Voting is expected on Trump’s tax bill in the US Parliament this week. Investors are worried that the US national debt burdened under the burden of US $ 36 trillion can already increase by about 3.8 trillion dollars.
Apart from this, the increasing tension between Israel and Iran has also affected the Indian stock market. According to reports, the US has gathered new intelligence information that Israel is preparing to attack Iran’s nuclear center. Along with this, there is an atmosphere of fear among investors due to increasing cases of Corona in South-East Asian countries like Singapore and Hong Kong. The sluggish round of the fourth quarter income has further increased the problems of investors in the Indian equity market.
Investors lost Rs 3 lakh crore
As a result of all this, the Sensex fell 1,005 points to 80,591.68 and the Nifty fell 275 points to 24,537. The market cap of listed companies in BSE fell in today’s session to Rs 438 lakh crore as against Rs 441.09 lakh crore. Due to this, investors have lost Rs 3 lakh crore today.
On Thursday, M&M, Powergrid, NTPC, ITC, Nestle India, Tata Motors, Tech Mahindra, RIL and TCS were the highest falling shares on the Sensex, with a decline of up to 2.84 percent. Bharti Airtel and IndusInd Bank’s share Sensex could lead to only 0.54 percent.
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