Do you know why stock markets fall down in the 4th quarter?

Prima facie at the beginning of the new year unluckily markets a fluctuated and tend to down, but with a short correction gap while traders and investors saw BSE and NSE touches to 36,000 points and 11,000 points respectively, and while budget 2018-19 markets are hit by bear continuously for 8 days, i.e., 30th January 2018 to 07th February 2018. Not only the reasons which are above said, but also have to take under consideration such as North Korea warns to America, rising of Crude Oil prices. On 19th February 2018, S&P Sensex took a steep fall to 33,000 points, investors took fruits without ripe.
Recently, stock markets took some correction rose with bull due to unchanged rates in RBI 7th Monitory Policy Committee (MPC), Industrial Index Price (IIP) and Customer Price Index (CPI) /Retail Inflation rates enhance.

Markets fall down reasons

  • Govt. imposed 10% long-term capital gains tax on investors in the budget due to this US Bonds raised and it’s going to become a spine break to investor returns.
  • The fiscal deficit increased to INR. 6.77 lakh Cr.
  • Increases fiscal deficit to 3.2% to 3.5% in the current fiscal year.
  • Punjab National Bank Scam and Rotomac debt default.
  • The trade war between China and America.
  • SFIO issues notice to ICICI and AXIS Bank officials in the PNB Scam.
  • In Forex Market rupee 0.68 paise depreciated against the dollar.
  • Rising crude oil prices.
  • ICICI Bank CEO&MD Chandra Kochhar stuck in Videocon’s debt controversy.
  • RBI is questioning the Shikha Sharma’s appointment in the face of more Non-Performing Assets (NPAs).
  • America challenges Indian export promotion plans in the World Trade Organization (WTO).
  • TDP withdraw their support to the NDA and move no confidence motion against the government in the parliament which proclaims antitrust decision.

Rally reasons

  • China is adhered to reduce tax implication on import goods from America, which may lead to international trade war otherwise.
  • RBI is neutral in the movement of key interest rates fixed which boosts the economy and growth rate and benefitted to banks with allocations in 4 quarters on bond losses.
  • Lowering the government’s debt mobilization target in this financial year.
  • The Dept. of Economic Affairs increases the growth rate of the Indian economy by 2025, INR. 5 Lakh Cr (approx.)
  • GST rates reduced on certain goods and services in the quarter starting.

 

 

  • In this quarter S&P Sensex maximum gain 611 points on 13th March 2018 and maximum loss 840 points on 02nd February 2018 and Nifty50 maximum gain 195 points on 12th March 2018 and maximum loss 256 points on 02nd February 2018
  • In Forex market compared to the dollar, rupee gains 0.31 paisa on 23rd February 2018 and losses 0.58 paisa on 20th February 2018
  • In the month of March, markets have seen 9 days continue profiting.
  • Till 31st march no technical interruptions and any other issues, neither in BSE nor in NSE
  • No stop hours
  • 59 Total trading days and 31 holidays including weekends.
  • BSE maintains 36,000 points mark continues 5 days and NSE maintains 11,000 points continues 7 days as well.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News & Article

Financial Advisory Services at Your Door Step.

If your occcupied don't have time to plan your financial investment we are here to guide.