Currently, a somewhat panicky situation has been awaiting in the share market of India. This is because of the NSE of India and the BSE of India plunging for the third executive week at a stretch. The rapid flow of foreign funds and with Indian investors heavily investing, it was the force of the bull that governed supreme. But the situation lasted for a short time. The bear market gained momentum post festive season, ie Diwali turning the 21000 plus BSE sensex benchmark to loss more than 1800 points. Even the nifty of the NSE of India exhibited a similar fate. No investor can do away with the forces of the bear and the bull. And this is a common affair in the NSE BSE market.
There are several reasons that led to the plunge of the nifty and BSE sensex. Here is a list of the same:
- 2G spectrum scam creating political instability; it did have an impact on the dampening of the NSE BSE markets
- The housing finance bribery scam involving top officials in top financial institutions and PSUs; the scam is unearthed by CBI. It has dampened domestic trading but not international trading
- Credit concerns in Europe
- Korean fears leading to sell-off in global markets
- Monetary tightening in China, and more.
The above factors accounted for the current downtrend. One reason that led to the fast rise of the BSE sensex resulting in an all-time high is due to foreign investors who majorly contributed to the inflow of funds that did not participate in the selling. As per market statistics and latest news, there were not many sellers preferring the Diwali, but post Diwali, net selling amounting to Rs. 3500 crore happened suddenly leading to the executive fall.
But the greatest downtrend was witnessed during the recession period that greatly affected world markets including the NSE of India and BSE of India. And the markets did recuperate and special mention needs to be made of the fast recuperation of the share market of India.
For latest news related to the NSE of India, BSE of India, and the share market of India as a whole, you can bank upon an online trading platform. As a beginner, you can open a trading account here; right from day one you can avail a number of benefits right from getting stock tips related to NSE BSE markets, recommended stocks, access to news, and related regalia. Experts catering to investors from such a portal facilitate the latter to get a clear picture of share market of India. Depending on the particular market condition, you will be given the right advice.
Who does not know about the BSE sensex? Ask any literate individual and pat would come the reply; such is its influence in corporate houses, Indian households, etc. today. Look for gains in the long term and do not get affected by such temporary downtrends. Continue with your research and set a trend.