Why Is The Stock Market Down Today?

Why Is The Stock Market Down Today?

If you are talking about the stock market and you are talking about the Indian stock market, so the point is not yet limited to Indian Stock Market as you can see the US stock market also crashing and all worldwide stock markets diving in the same boat. 

There are some reasons for it let’s deem the reasons one by one.

Russian – Ukraine war – It is the main point of the volatile stock market nowadays and it’s also still on and no one is aware of when it will be stopped. 

Hike Price in crude oil –  due to the continuous war between Russian vs Ukraine, the price of crude oil getting higher which becomes the main problem of the down share market but it’s getting double because Ukraine supplies the oil all over the world. And it is now 140$per barrel. If crude oil gets a price hike then petrol and diesel will get high automatically which will cause expensive transportation.

Why Is The Stock Market Down Today?

Getting high prices of products -A hike in the price of crude oil affects companies’ products, directly and indirectly. an increase in the price of crude oil caused an increase in the price of petrol and diesel and the transportation getting expensive. due to expensive transportation supplies of products getting higher. because of all thisThe company’s owner had to increase the prices of the products to cover their import and export expense otherwise they will lose the investors. It’s related to each and every product where is the use of transportation its price will be an increase whether it is related to technology like mobile phone, laptops anything that is also called inflation. due to costliness, people use less amount of products according to their pockets which became the prominent reason for the share market downfall.

Increase in Repo rate –  To control inflation, central banks increase the repo rates so hiking the repo rate causes the rate increases interest on Loan amounts. so the people dropped their decisions like purchasing buildings or any other fixed asset. Secondly, when the repo rate increases so it’s it puts the same effect on saving accounts because there is increasing interest on fixed deposits and other deposit accounts and it becomes one more reason for Bank Nifty’s share price downfall. because people move on to saving more and reducing expenses. 

Most reasons for down businesses –  people cut down on their expenses due to the high cost of products and services and put up in savings because of the increase in repo rate they get a high rate of interest on savings. the listed company in the National stock exchange and Bombay Stock Exchange seeing a downfall because the company’s not earning sales smoothly all because of high inflation that is why all businesses getting down which affect directly or indirectly the share market. good sales lead a company to increase the share price of the company.

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