Stock market rumbling due to inauspicious signs, investors’ portfolios are red, how much power is there in the matter of a recession
Share Market Crash: The discussion of the Global Recession is not taking its name to stop. The fall in the income of large multinational companies and layoffs by them on a large scale is fueling the fear of recession. Due to this, the stock markets around the world are eating hiccups.
Highlights
- Banking stocks have been beaten the most.
- The Pharma index has also closed in a red mark.
- The Sensex has fallen 3% so far in the new year.
New Delhi. Before the Union Budget (Budget 2023), the Indian stock market saw heavy selling on Friday and the Sensex and Nifty closed at a 3-month low. Investors have suffered losses of close to Rs 10 lakh crore in two trading sessions only. Market experts say that investors are scared due to the fear of global recession. The fall in America’s economic growth rate in the December quarter as compared to the September quarter has fueled fears of a recession. Foreign investors are withdrawing money from the Indian market. Investors have also been shaken by the frequent layoffs of employees by big companies.
On January 16 itself, the World Economic Forum (WEF) said in the chief economist forecast survey that there is a possibility of a global recession in 2023. About two-thirds of the chief economists believe that there is a possibility of a global recession in 2023. Of these, 18% expressed a high probability of it. This figure is more than double as compared to the previous survey conducted in September 2022.
Today i.e. on Friday, the last trading day of the week, the Sensex closed at a level of 59,330.90 with a decline of 874.16 points or 1.45 percent. At the same time, Nifty closed at the level of 17,604.30 with a decline of 287.70 points i.e. 1.61 percent. On the last trading day of the week, selling dominated in all sectors, but banking stocks were the worst hit. The energy sector has also broken by more than 5 percent. There is a 4 percent decline in the metal index. IT, realty, and pharma index also closed in the red.
Sensex
fell by 3 percent BSE Sensex has fallen by 3 percent since the beginning of the new year. On January 2, 2023, the Sensex closed at 61,167.79. At the same time, today the Sensex has given closing at the level of 59,330.90. However, Sensex has gained 4.35 percent in the last 6 months. The Indian stock market is not able to stabilize and it is vacillating. Market experts say that some global factors are hindering the growth of the Indian market. These include the sluggish economic activities of many developed countries and the US Federal Reserve continuing to increase interest rates.
The downgrade in GDP forecast The
United Nations has slashed its GDP growth forecast for India for the calendar year 2023 to 5.8 percent, citing the impact of tighter monetary policy and weak global demand. The United Nations report said that India’s growth rate can be 5.8 percent. This is lower than the projected 6.4 percent in 2022. Every negative comment coming about the economy affects the sentiment of stock market investors and its effect is seen on the market.
