New Delhi:- Sensex and Nifty saw a sharp decline in the trading session that started on Monday. The stock market has been in a downtrend for some time now. The Sensex saw a fall of mpore than 1500 points and the Nifty fell by about 450 points. Due to this, in a matter of minutes, about 5 and a half lakh crore rupees of the investors were drowned.
Reason No. 1:- Inflation at a 40-year high America Inflation
Inflation in America has reached a 40-year high level of 8.6. This is happening due to increase in essentials and food price.
Reason No. 2:- Expected increase in Interest Rate
After reaching the record level of inflation in America, the US Federal Reserve Bank is expected to increase the interest rate. The two-day meeting of US Federal Reserve will begin on June 15.
Reason No. 3:- Crude Oil Fluctuations
There has been a period of volatility in the rate of crude oil. Crude oil has softened on hopes of an aggressive approach from the US Fed and the possibility of a lockdown after increasing cases of Covid-19 in China. Its effect also being seen on the stock market.
Reason No. 4:- Inflation figures of the
In April, India’s inflation rate rose to 7.7 percent. Ever-increasing inflation, the repo rate was increased by the RBI in the last days. According to a Reuters poll, now the Consumer Price Index for the month of May may come down to 7.10 percent.
Reason No. 5:- Record Fall in Rupee
The Indian rupee has come down 78.16 per dollar with a record fall. The rupee has fallen to this level for the first time due to strengthening of the dollar.