Indian stock markets fell sharply today on August 5. Following this, tensions between Israel and Iran were seen as the Bank of Japan cut interest rates by 0.25%, rising equity prices and reducing bond purchases also impacted the market, while high-value stocks registered gains.
During trading on Monday, August 5, the first trading day of the week, the Indian stock market Sensex fell by more than 2600 points amid fears of a possible recession in the US, while the Nifty also rose. Investors have lost more than Rs 10 lakh crore due to the 24,000 points.
During trading on August 5, the Sensex fell 2686 points to reach 78295 points, while the Nifty fell 824 points to come below 24000 for the first time since June 26. This is the biggest fall in August today after June 4. 5. Let us try to understand the reason for such a huge fall.
Not only the Indian stock market, but the Japanese stock market has also seen a major decline in about 3 decades.
Fear of recession in America: The unemployment rate in the US has reached a three-year low of 4.3 percent. The US economic data has once again intensified the debate among investors.
Impact of Japan’s Yen Carry Trade: As the Japanese currency yen strengthens, investors are reducing their positions in yen carry trades as they are forced to reduce their positions to avoid losses after the Bank of Japan raised interest rates by 0.25% and reduced bond purchases.
Geopolitics: Geopolitical tensions weighed on market sentiment as concerns grew over possible attacks on Israel by Iran and its regional allies.
Profit Realization: Many experts are calling the August 5 drop a major correction given the overvaluation of the stock market, while the June quarter results of some companies were below expectations. Market.
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