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What are the reasons for the stock market crash, what is the stock market crash?

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What are the reasons for the stock market crash, what is the stock market crash?

stock market crash

Stock market: A few days before Diwali, the stock market movement has begun to falter and has yet to recover. There are many reasons for the stock market crash. Which we are going to talk to you about today.

Along with this, we tell you what the stock market crash is and what are the reasons behind it. We will tell you about this here too. After which there will be no confusion in terms like stock market crash and stock market crash.

stock market crash

In the stock market, when Sensex and Nifty fall by 200-300 points, it is called stock market crash. Generally this fall is due to news that does not favor the market.

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Reason for the stock market crash

There are many reasons for the stock market crash. Let us tell you that the stock markets of America, Europe and Asia have a lot of influence on the BSE and NSE. If for some reason stocks fall in these markets, then a fall is also seen in SENSEX and NIFTY in India.

At the same time, when the US Federal Reserve raises interest rates, it also causes a decline in the market. Apart from this, geopolitics and the increase or decrease in the price of crude oil also affect the stock market.

What is the stock market crash?

There is a huge drop in the stock market crash, due to which investors lose millions of rupees. In 2008, stock markets around the world plummeted due to the Lehman Brothers bank crisis in the United States. While in 2020, due to the Covid epidemic, Sensex had dropped from 40,000 to 26,000 points.

Apart from this, sometimes the stock market crashes due to profit booking by investors. Additionally, when foreign investors withdraw their investments from the stock market due to war, terrorist attack, or any other reason, the market can crash.

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