Indian stock market downfall
Monday, March 17, 2008 by Praveen
This week India stock market even touched two and half year low levels entering in 15000 points level. Suddenly, India stock market which was making new and new record every day crashed so badly. Most of the people in India want to know the answer of this question because they have lost lot of money in this whole slide of stock market.
From last two day, stock market is showing slight signs of recovery, however, it is still not clear that it will be again able to reach same levels or not and if reach at old levels than much time it will take. At present, no expert or investor has exact answer to this question and they are advising caution to people. Though, this is the nature of market and in past also market has behaved in similar manner.
There are few reasons which are presently affecting the India stock market badly. First is decreasing interest of foreign investors in India stock market because they are now finding gold and crude oil investments more rewarding than investing money in India stock market. Already, prices of crude oil and gold have touched their highest level in world market.
Second is ever increasing prices of crude oil and its impact of economy of India which is importing most of its oil from outer world. Third is reaction of Indian stock market to decreasing Western and Asian stock markets. Forth is slow down in number of sectors which can further cause slowdown in whole economy of India. Fifth is increase in taxes on big investors in this budget. Sixth is increasing inflation and cost of living in India.
Last but not least is panic among the small and medium investor which is stopping them from investing in stock market. These are few reasons which are among the few of reasons for the downfall in India stock market. India still has lot to offer to the world, therefore, we can again hope to see same jump in India stock market.
From last two day, stock market is showing slight signs of recovery, however, it is still not clear that it will be again able to reach same levels or not and if reach at old levels than much time it will take. At present, no expert or investor has exact answer to this question and they are advising caution to people. Though, this is the nature of market and in past also market has behaved in similar manner.
There are few reasons which are presently affecting the India stock market badly. First is decreasing interest of foreign investors in India stock market because they are now finding gold and crude oil investments more rewarding than investing money in India stock market. Already, prices of crude oil and gold have touched their highest level in world market.
Second is ever increasing prices of crude oil and its impact of economy of India which is importing most of its oil from outer world. Third is reaction of Indian stock market to decreasing Western and Asian stock markets. Forth is slow down in number of sectors which can further cause slowdown in whole economy of India. Fifth is increase in taxes on big investors in this budget. Sixth is increasing inflation and cost of living in India.
Last but not least is panic among the small and medium investor which is stopping them from investing in stock market. These are few reasons which are among the few of reasons for the downfall in India stock market. India still has lot to offer to the world, therefore, we can again hope to see same jump in India stock market.
