Why did the stock market suddenly fall?

A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles.

What caused the 2007/08 financial crisis?

financial crisis of 2007–08, also called subprime mortgage crisis, severe contraction of liquidity in global financial markets that originated in the United States as a result of the collapse of the U.S. housing market.

How global market affects Indian market?

More over Indian companies exports their products to international market. The export volume is increasing day by day. The domestic Indian companies finds its huge profit from international market. The share price movements of these companies are more likely to be affected by the development of the world economy.

Why did the Indian stock market crash in 2016?

On 9 November 2016, crashed by 1689 points, believed by analysts to be due to the crack down on black money by the Indian government, resulting in frantic selling. The Sensex nosedived by 6\% to 26,902 and the Nifty dropped by 541 points to 8002. These were said to be due to the demonetization drive by the Modi government.

What is the biggest fall in India’s market history?

As the COVID-19 cases kept worsening in India the markets entered a bearish slump. On 23rd March the markets fell by a record of 13.15\%. This was the largest fall in Indian market history.

Why does the stock market fall?

Why does the stock market fall? The answer is simple. In the short term, the market moves because of buyers, sellers and their sentiments (i.e emotion, opinion or feeling). When the strength of selling is more than the strength of buying, the market tends to slide downwards.

Why do foreign investors continue to pour money into India?

Foreign institutional investors have continued to pour money in India, providing massive support to market rally. The sudden profit booking came in amid weakness in the Asian markets and increasing nervousness among market participants, as evinced from the sharp rise in volatility indicator. Fasten your seatbelt!

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