look news india
Stock Market Outlook: The Indian stock market has been trading at its all-time high for the last few days. But the decline recorded in the last two days has increased the possibility of a major correction. In that too, due to the worsening situation of war between Iran and Israel, there is a fear of a big fall among the investors.
Shifting to safer investment instruments
Due to geopolitical crisis, foreign investors are withdrawing their investments on a large scale. The effect of which has been seen on the local stock market. If the war situation between the two countries increases, investors may turn to safer investment instruments from the stock market. This will also increase profit making.
Global markets collapse into war mode
Equity markets around the world have collapsed amid the war situation. America's Nasdaq has fallen 1.53 percent. The Dow lost 0.41 percent, with the S&P 500 falling 1.4 percent. There has been a big fall in the shares of big technology companies like Apple, Nvidia and Microsoft. The volatility index has reached a high level. Japan's Nikkei fell more than 2 percent.
According to experts, the condition of the stock market
Kelly Cox, chief market strategist at Ritholts Wealth Management, said tensions in the Middle East have added to market volatility. Crude oil prices have gone up, bond prices, gold prices have gone up. The stock market has broken due to increasing possibility of hedging. Joseph Saluzzi, co-head of equity trading at Themis Trading, said crude oil has become expensive due to geopolitical tensions. Therefore, inflation will increase globally, and to curb it, the stock market may see a decline with the fear of interest rates rising again.
What will be the condition of the market tomorrow?
If the war situation continues, there may be a big fall in the Indian stock market. Risks will increase in global markets. Sales of foreign investors will also increase. The possibility of gold prices reaching record levels has increased.