Stock drop: It was expected that in 2022, the way the Sensex Nifty reached new heights despite the fall in stock markets around the world, investors made huge profits despite the difficult conditions, in such a situation, 2022 with a spectacular boom in the bag. market It will be fired. But this hope has remained in the land of the earth. On Wednesday, December 22, as soon as the news came that the Indian Health Minister was going to hold a meeting in view of the growing Corona outbreak in China, the stock market took a U-turn and for the last three days, a big drop was observed in the market.
Big drop in four days
Sensex dropped 1000 and Nifty dropped over 300 points in the fall storm on Friday. Sensex has fallen 2,000 points in the last four days, while Nifty has fallen 580 points. Investors have lost Rs 15 lakh crore in the last four trading sessions. But the question arises whether this drop in the market has happened only because of the Kovid news or the reason for this drop is more than Kovid.
Covid is on the mind
CNI Research’s Kishore Ostwal says that Covid is in our minds and not in the US, China, Japan or Korea, which we are afraid of. He said that the ups and downs in the market are part of the plan. But Nifty’s trip to 19400 is fixed. He said that whenever the feel-good factor kicks in in the market, the fear index explodes.
Let’s look at the reasons for the market crash.
Recession in America-Europe
The recession talk is constantly coming up in America and Europe. To curb inflation in the United States, the Federal Reserve is raising interest rates and if this continues, there may be a partial recession. If this happens, it will surely have an impact on the Indian economy. Our exports will decline, proof of which is known by the fall in IT shares. Despite these concerns, the Indian stock market continued to boom. But now the Indian market is reacting to these negative news.
The new variant of Kovid worries investors again. Corona cases are increasing in China. Japan, South Korea are also affected by this. If air travel is active, the risk of spreading the infection in India increases. If this happens, many types of travel restrictions can be put in place, so the market is experiencing a downturn.
inflation in japan
Inflation in Japan hit its highest level in 40 years in November. Because there is a dip in the market there, then because of the tighter monetary policy signals from the Central Bank of Japan, the market is also disappointed.
christmas and new year holidays
Every year at Christmas and New Years, investors go on vacation. In such a situation, there is a tremendous decrease in the volume of the market. In 2022, when there has been a tremendous boom in the market, investors want to take their profits home. That is why they are busy making profit. That is why the market is experiencing a crash.
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