Coronavirus: Reason for drop in the market. Stock Market News.



Isn't Coronavirus the only reason for the 1,000-point drop in the Sensex?



During the trading session on Friday, the domestic stock market was completely under the guise of recession. After five days of selling, the market dropped in the sixth session. All-round sales dominated the whole market. The bulls were seen defending themselves. The outbreak of the Coronavirus is spreading all over the world. Because of this, the major indices dive by three per cent. There were 30 stocks of Sensex or 50 of the Nifty, all recorded in the red mark. On Thursday, US markets dropped 4.5 per cent.

India's risk index, India VIX Index, too jumped 20% and crossed the 21 levels. But the market is not dropping just because of the Coronavirus. There are many other reasons for this decline. Here is a look at these reasons:





1. The shadow of the corona, the shadow of the coronavirus on six continents has reached six continents. Human life is usually inhabited on these six continents. This has scared the broker path the most. Although the pace may have softened in China, its new patients and increasing deaths worldwide have raised concerns.

According to news agency Reuters, 10 new countries have confirmed their first coronavirus case in the past 24 hours. It also includes Nigeria, the most populous in Africa. Nigeria has become the first African country to suffer from the disease. Outside China, cases of the Coronavirus are rapidly increasing. The outbreak of this deadly disease is spreading rapidly in South Korea, Italy and Iran. The highest number of Corona, 2,022 cases have come to South Korea after South Korea.


2. Record decline in the US stock market
The US stock market was badly beaten on Thursday. Since February 19, the S&P 500 Index has dived by 12 per cent, the biggest fall in six seasons. Dow Jones also dived 1,190 points, a drop of more than its fourth 1,000 points.

Asian markets also imitate global markets. Japan's Nikkei slipped by 4 per cent. MSCI's all-country index slipped 3.3 per cent on Thursday. This week, the index slipped to 9.3 per cent, the biggest weekly drop since 2008.




3. The slowdown in growth rate Some investors also used caution due to domestic reasons. Economists have estimated that India's gross domestic product (GDP) will remain flat in the third quarter. The central government is to present the third-quarter growth rate data this evening.

The State Bank of India estimates that India's growth rate will be 4.5 per cent in the October-December quarter. The bank believes that the coronavirus spread in China will have a significant impact on the Indian economy as India sends large quantities of goods from China.


4. Sales of foreign investors
Foreign portfolio investors sold shares worth Rs 3,127.36 crore on Thursday. Over the past four seasons, shares have sold more than Rs 10,000 crore in the net. Market giants believe that if conditions on the global level do not improve, the beating of the market and their sales will continue.

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