Reasons of Stock Market Crashing. Stock Market Information.



Top 10 Reasons to have a Stock Market Crash.



Being a Stock Market Crash means a lot of stock prices in the stock market or a sharp fall in prices simultaneously; The stock markets in other countries of the world had a huge fall and this was a very big STOCK MARKET CRASH.

Understanding the causes of the stock market crash and its disadvantages and benefits becomes very important,

That is why in this post today, I try to understand the different reasons for having a Stock Market Crash.


STOCK MARKET CRASH.



There is no definitive definition of a stock market crash, but if there is a decline in percentage in double digits within a few days, it is considered a stock market crash,

For example, if the Bombay Stock Exchange Index SENSEX or the National Stock Exchange index NIFTY fall within a few days, usually within 1-10 up to 10 per cent or more, it means stock market crash. Has been. And the market has slowed down.


It is worth noting that - there is not a definite reason for the stock market to fall, there may be many reasons, but there are also some major reasons, so now let's look at the major reasons why the stock market is CRASH. Understand -


First Reason - Betting or Speculation (SPECULATION)


In the stock market, some people try to make money by using the means of betting, betting means gambling, when you lose, you lose everything you have at stake and hope to earn a lot of profit if you win. Happens.

Whenever the market gives a steady profit and there is a steady pace, some people start betting on the market at a very large level, the betting starts to get faster in the market and then after some time the bookies disappear from the market. Then, the stock market drops in a big way.


The second reason - POLITICAL RISKS.

 


You may have noticed that whenever there is an election, it has a huge impact on the stock market when the government is stable and people have more faith in that government then it has a positive impact in the market and starts to get faster, but as It is only in the government that stability comes and political change is expected to take place, it has a direct impact on the stock market and the market goes down fast.

The tax policy of the government, economic development, relations with other countries, such are the many factors that affect the market.


Third Reason - Economic Depression (ECONOMIC RECESSION)

 


It is difficult to say that the economic downturn causes the stock market crash of the economic downturn due to the stock market crash. And if the economic downturn is a long time then the stock market may crash.


Fourth Reason - Fighting (WAR).

 


In a situation like the war of two countries or World War, people start withdrawing money from the stock market, which causes the stock market to crash.

For example, in the year 2017, the Indian Army made a surgical strike with Pakistan, which was a small battle, but because of that fight, the stock market of both the countries had a major decline, because of the fear of the people.


Fifth Reason - Global Economic Depression (GLOBAL ECONOMY RECESSION).

 


The stock market crashes due to the impact of the global economic downturn, the year 2008 is its biggest export, as the US stock exchange crashed, its impact on the stock market of other countries, and its bad impact on India as well. Happened, and the Indian stock market also crashed.



New Delhi (Business Desk): The impact of the continuing trend in global markets is clearly seen in the Indian stock market. The Sensex, the main index, lost nearly 1,300 points in Tuesday's trade. On January 31, 2018 and February 1 (Budget Day), 2018, the stock market closed with a downward trend. Since then the stock market has continued to decline. We are going to inform you through our news that when is the last time the Indian stock market has fallen and the investors' money is sinking.


September 29, 2016: 

After rising tensions between India and Pakistan, the benchmark index of the BSE fell to 500 points on September 29. On this day, the market was trading at 300 to 500 points. Due to this, on September 28, 2016, the Indian Army was informed of the surgical strike on Pakistani soil.


November 8, 2016:

On November 8, 2016, the central government took a big step against the ban on black money. The impact of this move was also seen on the Indian stock market. On November 9, 2016, the BSE's major index Sensex saw a fall of up to 1689 points. This was the biggest drop in the last 15 months. Let us tell you that 86 per cent of the currency (500 and 1000 notes) was prevailing in the market due to the decision to note down.


June 21, 2008:


It was the biggest fall day for the Sensex. The Sensex fell 1,408 points to this day (Monday). However, after touching a low of 16,963.96 that day, it improved to 17,605.40.


June 22, 2008: 

The decline in the Sensex on Monday continued on Tuesday. The Sensex recorded the biggest fall of intraday. It touched a low of 15,332, a decline of about 2,273 points. The Nifty fell to 4,899 points on this day, a decline of 310 points.


May 18, 2006: 

On this day, the Sensex dropped 826 points (6.76 per cent) and closed at 11,391. The main reason for this was the heavy selling by FIIs. The Nifty also fell 496.50 (8.70 per cent) points to 5,208.80 on this day.


December 17, 2007: 

 



After the opening of the day, heavy selling was seen in the market till noon and the Sensex rolled down to 19,177, a decline of 856 points. The Sensex fell 769 points (3.8%) to end at 19,261. The Nifty also fell 271 points to 5,777 on this day.


October 18, 2007: 

By midday trading, profit recovery was visible in the market and the Sensex went into negative zone. The gains continued until the market closed and the Sensex plummeted to 17,771 levels. It dropped 1,428 points a day. The Sensex closed 717 points (3.8%) lower at 17,998. The Nifty also fell 208 points to 5,351 level on this day.


January 18, 2008: 

This day saw the stock market fall in the last hour of trading. The Sensex plunged 786 points to its level of 18,930. The Sensex closed 687 points (3.5%) to end at 19,014. On the other hand, the NSE Nifty fell 3.5 per cent (208 points) to close at 5,705.


November 21, 2007: 

Sensex also saw a sell-off along with continued weakness in Asian markets. On this day, the Sensex plunged to 18,515 points, a decline of 766 points from its previous closing. On this day, the Sensex finally touched 188,603, down 678 points. On the other hand, the Nifty also rolled this day and closed at 5,561 levels.


August 16, 2007: 

The Sensex continued to decline after 500 points fell on the previous day. The Sensex was at the bottom with 14,345 on this day. The index closed 643 points to 14,358 points on this day.

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