What caused Black Monday for Indian stock Market?


Today, Indian stock market saw an historical fall with market losing more than 2000 points in a single day, though market latter recovered 600 points and finally closed at 1408 points down. This 7.4 % downfall was one of highest downfall not for Indian stock market but in terms of world market also. Today, market was on complete downfall mood with 1218 declines and only 8 advances in stock indices. Indian stock market has lost 4.9 lakh crore rupees in a single day and if we add the decline of Friday also then market has lost almost 6.6 lakh crore rupees.

This is really big shocking news for all the investors and many people have suffered huge losses due to this decline. The major reason behind this decline is believed to be major profits booking by big financial investors like mutual funds and weakness in global market. Some experts also believe that market crossed 20000 marks very early and therefore, some corrections were required. According to them actual position of market is around 18000 points. However, still many experts believe that investors are not required to worry about this situation because soon market can again touch the same levels back.

On the other hand, some people may find this fall as an opportunity to enter stock market because most of the blue chip shares like Reliance, DLF, and Airtel are more than 20% down. However, experts are pointing towards a caution and avoiding any panic selling at present because market can crass further or some ups and downs may remain continue for few next month’s also.

Indian stock market has seen many such sharp fall earlier also where market has fallen more than 5% in a single day and major reason behind this was profit booking by the big players, however, small investors have always suffered in these falls. Therefore, it is very important for the small investors to plan their investments well and look for long term investments than short gains. Despite, this fall there are many chances that market will soon again rebound and reach back to its place. People who have money can exploit this opportunity by investing in good shares in small goes (for example investing in parts and not in a single day) and by seeing the mood of market.



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