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Share Market is down presently

Varying interest rates, declining economy, inflation, deflation, increase in tax-value, financial and political shocks, changes in the economic policy, changing value of Indian Rupee are some many factors that can cause a decline in the share market. Any disastrous event, economic crisis, bursting of long-term speculative bubble results in fall of share market. Reactionary public fear in response to a stock market fall can also be a key cause, prompting panic selling that further depresses prices. In the past 6 days, the 30-stock index has seen a decline from 66428 to 63119, amounting to a loss of 3300 points. Drops in account value reflect dwindling investor interest and a change in investor-perception of the stock. That’s because stock prices are determined by supply and demand driven by investor perception of value and viability. As long as shares are not sold, there is always a chance to regain lost value.  Market experts have attributed the significant fall in Sensex and NIFTY to multiple factors, but have agreed that it was primarily due to the rising geopolitical tensions in the Middle East due to the war between Israel and Palestine Millitant group Hamas. This simmering geopolitical tension in the Middle East region has triggered a wave of selling pressure. The uncertainty has increased further leading to weak sentiment across global equities. Thus, share market is also on a downward spiral due to uncertainties associated with this conflict. If this conflict lingers for long, then there will also be a risk of slowing down of global economy in coming future.