Biggest stock market fall in one day india

After the last year of 2020, Indian stock market indices witnessed a sharp decline in a single day yesterday. Not only in India, but also global markets were caught in a slump. On October 19, 1987, when the US markets fell sharply, that day was mentioned in history as ‘Black Monday’. Yesterday was a Black Monday,

Reason for the stock market crash

Global market declines, including US President Trump’s new retaliatory tariffs, have created uncertainty in Asian, European and US stock markets. This has led to investors selling stocks in large numbers, fearing a possible economic slowdown. US stock market fell by 6 percent, Chinese stock markets by 10 percent and Japanese stock markets by 8 percent. In comparison, Indian markets have seen a decline of only 4 percent.

What happens if there is a trade war?

Trade war tensions, China has become the first country to retaliate against the US’s reciprocal tariffs by imposing a 34 percent tariff. This has led to concerns that if other countries, including the European Union, also impose tariffs, it could lead to a trade war.

Crude oil prices fall, As demand is expected to fall due to fears of an economic slowdown, the price of crude oil in the international market has fallen by up to $10 per barrel in the past week. Although this is beneficial for India, which imports a lot of crude oil, the share prices of oil refiners including Oil India and ONGC have fallen as their profits will decrease.

why foreign investors withdraw money

Foreign capital outflow, The outflow of foreign capital from Indian markets has once again become a cause for concern. After a series of outflows in December, foreign investments started coming back only last month. In this situation, foreign investors have sold shares worth Rs 13,730 crore in the last week alone.

Precautionary measure, The outcome of the RBI’s monetary policy meeting is due tomorrow. Also, with the fourth quarter results of companies due to be released, investors have sold shares as a precautionary measure.

worst stock market crash

1992, The stock market crashed after news broke of Harshad Mehta’s alleged fraud in the stock market by artificially inflating the price of shares.

2001, The market crashed after Mumbai-based stockbroker Ketan Parekh sold shares in a short period of time in a ‘front running’ scam.

2004, The United Progressive Alliance government was formed after the BJP was expected to win the Lok Sabha elections. As a result, the Nifty fell by 12 percent on May 17. This was the second biggest fall.

2008, Due to the global financial crisis, the Nifty index fell by 12 percent in a single day. It took almost 2 years for the market index to recover.

2020, Due to the Corona pandemic, the Nifty fell by 13 percent on March 23. This was the worst fall the market had ever experienced.  It took almost 8 months to recover.