Indian Stock Market Continues Decline Amid Global Uncertainties; Here Are Some Key Factors Behind Recent Downturn

Indian Stock Market Continues Decline Amid Global Uncertainties; Here Are Some Key Factors Behind Recent Downturn

There are several factors that have contributed to this decline, ranging from geopolitical tensions, global economic uncertainties to certain domestic factors

Rahul MUpdated: Tuesday, April 16, 2024, 02:26 PM IST
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Indian Stock Market Continues Decline Amid Global Uncertainties; Here Are Some Key Factors Behind Recent Downturn | Representational Image/Pixabay

The recent downturn in the Indian share market over the last three trading sessions has sparked concerns among many investors and analysts alike.

The Indian stock market again today, April 16 continued on the trail of red with indices and major stocks starting on a negative note. The Sensex opened at 72,865.88, down by 531.06 points and the Nifty 50 fell 137.50 points at 22,135.00.

There are several factors that have contributed to this decline, ranging from geopolitical tensions, global economic uncertainties to certain domestic factors that has led to the recent downturn in the Indian stock market.

Here are some of the major reasons behind the market fall:

1. One of the major reason behind the market meltdown in recent is the geopolitical uncertainties, a powder keg in the middle east. The current ongoing tension between the Iran and Israel have flared up, sparking tension of wider conflict in the Middle East. Moreover, the Iran's retaliatory strikes against Israel have rattled global markets with concerns emerging over potential disruptions to oil supplies and regional stability.

2. Another reason for the market in red is the global economic headwinds i.e the domino effect. The recent sell offs in major global markets like US, Japan and Hong Kong, that have had a ripple effect on Indian equities. Furthermore, worries about geopolitical instability and rising inflation have caused investors worldwide to rethink the risk strategies.

3. The soaring oil prices, is another major reason. The crude oil prices have skyrocketed to their highest in the last six months, fueled by supply concerns and geopolitical tensions. This spike in fuel prices not only poses fuel inflation treat but also poses challenges for oil importing countries like India, adding market anxieties and prompting sell-off.

4. The strengthening of dollar and the rising yields, a global exodus can be consider as an other reason for the market fall. The US economy, coupled with expectations of tighter monetary policy, is spurring capital outflows from emerging markets.

5. Fears of a slowdown in economic expansion have raised questions about the Federal Reserve's monetary policy direction, leading to speculations about delayed rate cuts and further volatility in the markets. Weaker than expected US retail sales data have also raised doubts about the strength of consumer spending and economic growth.

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