There has been a huge decline in the Indian stock market today. It is being called a historic decline and the biggest gap down opening. The market has given a big shock to the investors due to the record decline. Both the main indices Nifty and Sensex have registered a huge decline, due to which there has been tremendous volatility in the market.
Black Monday for investors
In such a situation, today has been a black Monday for investors in the Indian stock market. There has been a record decline in the major indices, due to which investors have also suffered huge losses. Nifty is trading at 21,750 with a decline of 1154 points, while Sensex has reached the level of 71,512 with a decline of 3,851 points. In such a situation, the rupee has fallen by 30 paise to $ 85.74 against the US dollar in early trade. Experts have said that the main reason for this decline has become instability in the US markets, fear of global economic recession and confusion in the domestic markets. Apart from this, continuous selling by foreign institutional investors and domestic economic signals are also causing concern.
Investors should be cautious
Experts have asked investors to reconsider their investment strategy once again. Apart from this, give priority to long-term investment in the future. In view of the volatility in the market, investors are also being asked to be cautious.
Effect seen in stock markets around the world
The effect of the fall in the stock market is being seen all over the world. In the US markets, the S&P 500 futures trading has fallen by 4.31%, while the Nasdaq futures have come down by 4.5%. Japan's Nikkei index has fallen 7.8% to its lowest level of 2023. South Korean markets have also seen a decline of 4.6%. Hong Kong's Hang Seng index and Taiwanese benchmark have come down by 10%.
What is the reason for the fall in the stock market?
The reason for the huge fall in the stock market is the heavy tariffs imposed by US President Donald Trump on many countries. Due to these tariffs, many countries have also increased retaliatory tariffs on America. This also includes countries like China and Canada. The possibility of escalation of this trade war has also increased the risk of global inflation and recession. This has increased instability in the market and investors are now thinking before investing money.