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America is being seen as the villain for the slowdown in the stock market in India. Japan is also witnessing the worst recession in history. The slowdown in Japan, India and America means that the stock market is witnessing a global slowdown.
The Indian stock market is witnessing the biggest decline in 4 years. If you are thinking that the Indian stock market is in bad shape, then wait a moment. We will also show you the reality of Japan and America. Monday has proved to be Black Monday for the whole world. Let us explain to you why this is happening in markets around the world. After all, there is one factor that has affected many countries including America, Japan, India, China.
Actually, last Friday, job related data was released in America. In these data, due to people not getting jobs as expected, the unemployment rate has reached the highest level in 3 years. After this report, the fear of recession in America has once again gained momentum.
This is how America became the villain
This report caused the US market to crash. Its effect was visible on other markets as well. Actually, if there is a recession in America, it is seen as a global recession. This news from America proved to be a villain for India. On Monday, the Indian stock market witnessed the biggest single-day decline in 4 years. However, the market also crashed badly on the day of the Lok Sabha election results. Except for this one day, the biggest decline was recorded on Monday after March 2020.
Historic decline in Japan
This is the case of America and India. Let us now look at the situation in Japan. Japan's stock market has seen the biggest decline in history. Japan's benchmark Nifty 225 index closed 4,451 points down. This is its biggest decline so far in terms of points. The situation became such that trading in the markets of Japan and Korea had to be stopped for some time. If we talk about Korea after Japan, trading had to be stopped for some time after the Korea Exchange's benchmark Kospi fell by more than eight percent. Taiwan's Taiex index also closed with a fall of 8.4%, which is the biggest decline so far. Australia's S&P/ASX 200 index fell by 3.6%. Hong Kong's Hang Seng index fell by 2.6% and China's Shanghai Composite fell by 1.2%.
Why such a huge drop?
America played the villain for India's recession. So, three villains were responsible for Japan's historic collapse. Rise in Yen, tight monetary policy and recession in America. These three reasons completely broke the Japanese market. Due to these reasons, investors' confidence in Japan broke down, following which Japan's equity benchmarks fell by about 20 percent from last month's record high.