Share Market Crash / There is a possibility of further decline in the market! Know what the market expert said

Share Market Crash: Indian stock market may fall further in the near future. Market experts believe that the direction of the Indian market in the coming week will be determined by global economic indicators, US tariff policy and the activities of foreign investors. Investor sentiment may be affected by trade tariff concerns and withdrawal of foreign funds.

Market decline scenario

Vinod Nair, Head of Research, Geojit Financial Services, says that investors will keep an eye on US tariff policy and unemployment claims. The market may remain weak in the near future, but improvement can be expected after better results of companies in the first quarter of the next financial year and reduction in uncertainty on the global trade front.

Big fall in Nifty and Sensex

In the month of February, the Nifty of the National Stock Exchange (NSE) has fallen by 1,383.7 points i.e. 5.88%. At the same time, the Sensex of Bombay Stock Exchange (BSE) has come down by 4,302.47 points i.e. 5.55%. The Sensex was at its all-time high of 85,978.25 on 27 September 2024, but since then it has fallen 12,780.15 points (14.86%). Similarly, the Nifty has fallen 4,152.65 points (15.80%) from its peak level of 26,277.35. Last week, the Sensex closed down 2,112.96 points (2.80%) and the Nifty 671.2 points (2.94%).

Eye on important economic data

HSBC manufacturing and service PMI data will be released in the coming week, which will be monitored by investors. Siddharth Khemka, Head of Research, Motilal Oswal Financial Services Ltd, says that the market may remain weak due to weak global indicators and lack of positive signals domestically. The Indian economy has registered a growth rate of 6.2% in the December quarter, which is better than the 5.6% of the July-September quarter, but less than the Reserve Bank of India's (RBI) estimate of 6.8%.

Impact of foreign investors' selling and trade war

According to Ajit Mishra, Senior Vice President (Research), Religare Broking Limited, the market is currently grappling with the concern of a possible trade war. Apart from this, the pressure of continuous selling by foreign institutional investors (FIIs) is increasing.

However, the increase in GST collection is a positive sign for the Indian economy. Total GST collection in February has increased by 9.1% to Rs 1.84 lakh crore, indicating an increase in domestic consumption and economic revival.

Conclusion

The Indian stock market has seen a decline recently and may weaken further in the near future. However, investors do not need to panic about short-term volatility. In the long run, economic recovery and stability in global trade can return strength to the market. Investors should remain cautious and pay attention to economic indicators and global developments.