If you also earn from the stock market, then this news can prove to be useful for you. There is a threat of a big fall in the stock markets around the world. Now investors in India have also been warned about this. According to a government report, if there is a fall in the stock market around the world, then it will also affect India. If the market gets a shock, then there can be a huge devastation. Let's know about it in detail…
The Finance Ministry has also cautioned investors in its monthly economic review report. The ministry says that the risk of a major decline in the stock markets globally is increasing in the coming days. If there is a major decline in the global markets, it can have a spillover effect on the Indian market as well.
What is the reason for the decline?
The risk of market downfall is increasing due to the global economy and political conditions. Be it the economic slowdown of countries like America and China or the ongoing war in West Asia and Europe. All in all, an unfavorable environment is being created for the stock markets at the global level. Due to the turmoil in the global environment, it can have an impact on the stock markets all over the world.
Finance Ministry warned
The ministry has said in this report that some countries have changed their monetary policies. This policy change can lead to a big decline in the market in the coming days. If this risk increases anywhere amid the already complex and highly sensitive global political and financial situation for many reasons, then it will affect all the markets of the world. Obviously, India too cannot remain untouched by this.
The report said that the risk of recession is increasing in many big and developed countries of the world. Geo-political tensions and reduction in interest rates across the world are actually signs of increasing risk of market downfall in the coming times. However, at present everything is fine on the economic front in the country. But some challenges also remain, which cannot be denied. For example, if agricultural production decreases in some areas of the country in the coming days, then it can have a chain reaction on the entire economy.
There is fear of this too
Along with this, the report has raised concerns about some parts of the economy. The report mentions signs of a slowdown in passenger vehicle sales and rising inventory by the Federation of Automobile Dealers Association. Apart from this, the data on the slowdown in FMCG sales in the first quarter by NielsenIQ is also mentioned. The report says that even though their impact becomes very limited with the beginning of the festive season, there is a need to keep an eye on these signs.
Along with these negative signs, the report also mentions positive things about the economy. These include things like a fall in the prices of crude oil, increased area for sowing of Kharif crops, and an adequate amount of water for the upcoming Rabi crops.
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