The market may fall further for the next 4 days, these are the 5 big reasons

Share Market News: The Indian stock market has witnessed an unprecedented decline in the last five trading days. The Sensex has fallen by more than 4,100 points, while the Nifty has fallen below 1,200 points. This decline has caused a loss of more than Rs 16 lakh crore to investors, which is the biggest weekly decline since June 2022. This decline is influenced by various global events, especially the Iran-Israel conflict and China's economic policies. Let us know which factors can have a negative impact on the stock market in the coming weeks.

1. Iran-Israel Tension

The growing tension between Iran and Israel has had a serious impact on various stock markets of the world. Israel, in collaboration with the US and NATO countries, is planning to target Iran's oil facilities. On the other hand, the President of Iran has appealed to Muslim countries to unite. If this situation escalates further, then there may also be possibilities of a third world war at the global level, which can affect the Indian stock market.

2. China's economic policies

China has made several incentive announcements to boost its economy, which is leading to a boom in its stock market. The Chinese government has given an incentive of $ 140 billion to boost the property market. As a result, the CSI 300 index has increased by 25 percent in 10 days. This may prompt investors to turn from India to China.

3. Foreign investors' selling

Foreign investors' selling continues in India. Recently, they have withdrawn about Rs 9,900 crore. In the last week, foreign investors withdrew more than Rs 37,000 crore. If this trend continues, the Indian stock market may see further decline.

4. RBI monetary policy meeting

In the upcoming monetary policy meeting of RBI, a decision can be taken to keep the interest rates stable. If this happens, it will be the tenth consecutive time when RBI has not made any change in its policy rate. This may increase uncertainty in the market.

5. Haryana assembly election results

The results of the Haryana assembly elections next week can also affect the stock market. If the BJP does not get the expected success, then the market may see a huge decline. BJP has been in power in Haryana for the last 10 years, and if the election results do not come in their favor, then its effect can be seen widely.

Current situation and future prospects

On Friday, both Sensex and Nifty closed with a decline of one percent, taking the weekly decline to 4.5 percent, which is the biggest decline since June 2022. The Sensex saw a decline of 4,147.67 points during this period, while the Nifty fell by 1,201.45 points. Due to this decline, investors have suffered a loss of Rs 16.68 lakh crore.

Now it will be important to see which factors cause further decline in the stock market next week and whether the government or RBI takes any concrete steps to deal with it. There are hopes of improvement in the market situation, but investors need to be cautious.