Crash of the market

A stock market crash is sudden decline of the stock price across a significant cross section of a stock market which result in a significant loss of paper wealth. From the last few weeks there is continuous fall in the market all over the globe.

Corona virus plays an important role for this condition of market, as China is the major exporter of the raw material for the production but because of the problem in China the trade between China and other country is stopped so it directly hamper the production of other industries which result in the fall of stock prices of that relative organization. Transportation and travelling between the two countries are also not so frequent because of the spread of Corona virus so it directly affect the airlines sector. There is no big trade agreement  and physical meet take place between two companies of different countries which also affect the business. When we talk about pharmaceuticals sector the major raw material is exported from the China which slowdown the pharma sector, these are the overall impact of Corona virus in overall sector of the country.

Fall in Crude oil prices, crude prices nearly plunged nearly 30% after top exporter of crude oil Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets which create a pressure on the oil refineries companies regarding their profit, which bring down their stock in the market.

Yes Bank crisis, problem of Yes Bank  create a negative impact in the mind of consumers, consumers are loosing their interest on the banking system, it create a type of fear in the mind of people and it shook the banking system people are not assured whether any bank will run or fall in the future because of which the banking stock is falling regularly.

Foreign Portfolio Investor selling, FPIs continued to be net seller of  Indian stock in the month of March because of the Corona virus and Yes Bank crisis. In the March so far the stock sold of worth Rs 8997.46 crore in the cash market. Foreign Investor put the pressure on the Indian rupees and value of rupees is coming down and it touched Rs 74 this directly impact the Indian market and if it continues to then it have greater impact on Indian Economy also.

https://www.timesnownews.com/business-economy/markets/article/five-reasons-why-sensex-saw-biggest-ever-intraday-fall-today/562815

These all become the major reason for the crash of the Indian market from last few days.