In the present scenario, where the whole world has been shaken by COVID-19, the effect is also on the stock market. The impact is as bad as the worst nightmare; the world economy has crashed because of CORONA fear. It has been observed that prior to the COVID-19 pandemic, the stock market was stable, strong, and as good as a dream run, but all was ruined by this virus. All over the world, the coronavirus impact on stock market was horrible. Virtually everything’s down to earth now; the Sensex and NIFTY have gone down from heaven to hell.
Reasons for stock market fall
1. Due to the effect of Coronavirus, most of the country is following Lockdown. People are in home isolation. The market is closed, offices are closed, industries are closed, and in a word, the economy has gone for a toss.
2. The GDP of a particular country is coming down day by day; it’s a bad hit to everyone’s earnings. It is affecting the stock market, share value has gone down, and people are obviously scared to invest in this situation, which is directly causing the stock market to crash.
3. Crude oil is a major element, the price of which is at its lowest after two decades and it’s affecting the world economy so is the Stock market These oil companies are sinking due to the low market price of crude oil. These oil companies are the giant stockholders of the market, once they sink so does the stock market.
4. As the manufacturing industry is closed down, there is no production and no buyers at all. These companies are those who hold a good grip on the stock market, due to the coronavirus these manufacturing industries, except a few like healthcare, seeing losses. Their share value has gone down and it’s also affecting the Stock market.
5. Due to the lockdown in the whole world people are not allowed to go out and work, even those people who are farmers can’t go out for full-time work. The agriculture sector is also sensing a bad hit by the coronavirus and as the agricultural industry is directly proportionate to the stock market, the impact is there too, directly hitting the GDP of a country, paralyzing its economy and so the stock market.
6. The banking sector is another major industry, which has been affected too. Banks are now cutting down the interest rate. People are not investing in any long or short investments due to fear of COVID-19. This affects the Share market too.
