Reason for the multi-month fall of the indian stock markets..!?

2024 was a golden year for the indian stock markets. The stock markets touched a new high last September. But since then, the stock markets have continued to decline. The stock markets have suffered a death blow in the last 5 months due to international conditions. The Sensex and Nifty have fallen sharply from their peaks. Since last september 28, the Sensex has fallen by 10,677 points. The Nifty has fallen by 3,482 points. There was a sharp fall in the US stock market last Friday. This must have caused great concern for the big investors of the indian stock market. Because the volatility of the US stock market will be reflected in the indian stock markets. Experts said that indian stock markets have been in the grip of bears for the past few months due to international factors including the sluggish economic growth in the US. In the special report of the US Federal Reserve meeting released last week, the US Federal Reserve said that it is not willing to cut interest rates until there is full certainty about US inflation. This led to a rise in the US dollar, which had been low for two months. This prompted foreign investors to sell stocks in the indian stock market.

China:
The Chinese government has made fiscal and monetary policy announcements to promote economic growth. Such stimulus measures are expected to mitigate the impact of the tariffs imposed by the US. This is why foreign investors are selling indian stocks and transferring money to China.

Slowing economic growth in the US:
From spending cuts to taxes, companies have expressed widespread concerns about the impact of US government policies and geopolitical developments. Sales have been hit by uncertainty over the changing political landscape. Prices are rising amid tariff-related price hikes from suppliers.
Inflation:
In the US, independents and Democrats expect inflation to rise. At the same time, Republicans say inflation is falling. Existing home sales in the country last month were lower than economists had expected. Relatively high mortgage rates and very high home prices have also weighed on sales.

Gold prices rise:
The tariff dispute between the US and europe has created uncertainty in international trade. This has affected the price of gold. There are concerns that the trump administration may impose tariffs on gold, following the recent 25 percent tariff on aluminum and steel. This expectation has increased demand for gold in the US. As a result, gold prices have risen.
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Sowmiya Sriram

23/02/2025 11:04 AM