In the present scenario where the whole world has shaken by COVID-19, so is the stock market too. The impact is as bad as the worst nightmare; the world economy has crashed by CORONA fear. It has been observed that prior to the COVID-19 pandemic the stock market was stable strong and as good as dream run, but all ruined by this virus. All over the world, the impact of coronavirus on the market was horrible, virtually it’s down to earth now; the Sensex and NIFTY has gone down from heaven to hell.
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Reason for stock market fall
- Due to the effect of Coronavirus, most of the country is following Lockdown. People are in home isolation. The market is closed, offices are closed, industries are closed, and in a word, the economy has gone for a toss. GDP of a particular country is coming down day by day; it’s a bad hit to everyone’s earnings. It is affecting hugely the stock market, shares value has gone down, and people are obviously scared to invest in this situation, which is directly affecting the stock market to crash.
- Crude oil is a major element, the price of which is at its lowest after two decades and it’s affecting the world economy so is the Stock market These oil companies are sinking due to the low market price of crude oil. These oil companies are the giant stockholders of the market, once they sink so do the stock market.
- As the manufacturing industry is closed down, there is no production, no buyers at all. These companies are those who hold a good grip of the stock market, due to the coronavirus these manufacturing industries, except few like healthcare, seeing loss. Their share value has gone down and it’s also affecting the Stock market.
- Due to lockdown in the whole world people are not allowed to go out and work, even those people who are farmers can’t go out for full-time work. The agriculture sector is also sensing a bad hit by a coronavirus and as the agricultural industry is directly proportionate to the stock market, so the impact is there too, directly hitting the GDP of a country, paralyzing its economy and so the stock market.
- The banking sector is another major industry, which has been affected too. Banks are now cutting down the interest rate. People are not investing in any long or short investment due to fear of COVID-19. This affects the Share market too.