new Delhi. Today was one of the worst days for the stock market. Today saw the second biggest decline in the financial year. The stock market closed at 1400 points after 4 May. While the Nifty lost 432 points. The biggest reason for the market decline is the new strain of Corona in the UK. At the same time, there are three more reasons, due to which the stock market saw a big decline. Let us also tell you all the reasons…
Fear of new strain of Kovid
in the United Kingdom Corona virus A new version of has been identified. England’s Chief Medical Officer Chris Whitty said on 19 December that the new version of the Corona virus, which causes Kovid-19, could spread rapidly. Scientists are now working on whether the death rate from this new corona is high and how serious it can be? According to media reports, Prime Minister Boris Johnson was scheduled to preside over a meeting on 21 December today as many countries canceled flights coming from Britain.
Huge profit booking
According to analysts, the market is witnessing profit booking as the markets are almost at record highs. Since the corona virus is gaining momentum and despite signs of improvement, the economy is still seeing uncertainty, due to which experts are recommending profite bookings at regular intervals.
Weak global signal
Most Asian stock markets saw a fall on 21 December due to reports of a shutdown in the UK amid concerns of a new Corona virus strain. According to foreign media reports, MSCI’s largest index of Asia-Pacific shares outside Japan dipped 0.2 percent after reaching the record last week. Whereas after April 1991, Japan’s Nikkei went down by 0.4 per cent after the initial rally.
Selling by foreign investors
Apart from local selling, there was tremendous selling by foreign investors today. According to the data, today the index of foreign investors went down by 1000 points. Whereas in November and early December, it was seen that FII has invested tremendous records. Due to which the stock market also saw a boom. According to experts, there may be more selling from FIIs in the coming days.