Fall in Share Market


In post Central Budget 6 days share holders lost massive Rs12.50 lakh in a worst ever fall for Sensex. The Union Finance Minister Mr.Arun Jaitley categorically said that the share market upheaval has nothing to do with Central Budget not with the specific tax of 10 per cent on share purchases. He said all this was due to such sharp fluctuations in the world markets. The America is facing worst fall in share market since 2008. The Japan share market also working on sharp downward trend. It is considered as chain reaction from the Wall Street of America. It has its grip on all world share markets. The excess valuation of shares are reasons for uncertain conditions. It caused flight in smallcap and midcap shares. India’s Ambanis and Adani lost 64 thousand crores in first three days. The Tata shares are also badly shaken. In Mumbai 1769 points was worst even sensex fall elipsing 1282 point fall in 2008 during super prime crisis. The sensex fell because of slew of reasons both domestic and global. The US Central Bank excepts inflation to rise. There are such apprehension on all global market in the coming days inflation will be on rise and prices will shoot up. The US Central Bank may resort to higher interest rates thus hurting business. In India the Government will ensure enough liquidity in the money market. The market leaders say the budget proposal to reintroduce Long-Term Capital Gains (LTCG) tax and fear about fiscal slipped in election year added to market worms. The sell up in the stock market also led to a weakness of Indian currency. The rupee closed the day at 64.25 to a dollar. The Reserve Bank of India indicates that it would keep rates on hold in view of firming inflation. In all sector index registered steep fall, it will take a consideration time for the markets to come up after this sudden upheaval. But the fundamentals of the Indian are strong as of other developed nations. Its pace of economic progress will remain steady but it has to keep the inflation, price rise and fiscal deficit within limits.