Economic fluctuations in India's stock market - Causes

 What happens to the #STOCK MARKET market??

Why Investors feeling worry about investments??

From the past month the stock market indices both #bse and #NSE are on the backward trend has fallen more than 4-5% from their highest it has bothered the investors .

Investors now feeling cautious about their investments in the market.

The causes of the downfall in the stock market are various in which the prominent are the -

1. Withdrawal of money by the Foreign investors amid interest rate cut in US

2.Depreciation of Indian rupee to its all time low with respect to dollar i.e 85.8 rs per dollar.

3.Slowdown in an economy as depicted in the estimates of #GDP 6.4% for this quarter .

4.Depletion of the Forex reserves as it has come to 640billion dollars after long period.

5.Less investments into Indian firms by foreign investors as FDI

6.Low spending by private firms as capital expenditureto boost growth.

7.Reduction in private consumption led to the slowdown in manufacturing sector as people buying less.

8.Stance of RBI monetary policy to be strict from a long due to the inflation at its high from 2 years because of food inflation.

Government has to look after the interest ofthe investors in the stock market to build the trust so that they can invest and the sailing of an economy can be done smoothly also the incentives to be announced to stop the withdrawal of money by FPI as they are investing money in China by withdrawing from India.

India has a huge bunch of small investors who invest more as a saving rather than as a means of trading these small investors are the one who are getting affected by it a lot.

Government in its budget for FY 2025-26 should focus to attract foreign #Foreign Direct Investment and to take steps through fiscal policy to ease the inflation and secure the interest of investors.