Finally, India stock market made another downward record by closing below 13000 points today. Market closed at 12961.68 points by losing around 500 points in a single day. Nifty also closed below 3900 points at 3896.75 by losing around 144 points. These figures are very shocking for lot of investors who have lost huge money in stock market in recent past. Moreover, many experts believe that market can go even further down because still we have to see worst from inflation.
As already, I have written in my last article that Indian stock market is reacting negatively to any rise in inflation. Therefore, if inflation is not brought under control soon then Market can make new records in downside. Moreover, crude oil prices are also creating more worry for Stock market because most of the foreign investors are now investing in crude oil because in just one year crude oil has given huge profits to them ( $70 /barrel to $144 /barrel) and still, there is more hope of crude oil price rise present in near future. Other big worrying sign for the stock market is destabilisation at centre on Nuclear deal issue.
If UPA government falls before completing its five years then this outcome can affect very negatively our stock market. Therefore, it looks that next few months are not going to be smooth for stock market. It is advisable at this stage to not take big risks with stock market because stock market is very volatile and unpredictable. This situation is also true for most of world stock markets; they are also bleeding like India stock market.
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