Indian stock market shows a decline

On March 13, the Indian stock market encountered "Black Wednesday", and the overall market volume plummeted. The Indian Sensex index fell below the 73000 mark, and even once floated at the 72000 mark, until this week did it recover.Since the beginning of the 21st century, the Indian stock market has performed strongly and has only declined during the new crown epidemic.Nowadays, the Indian stock market has shown a decline, and it will inevitably become a hot topic internationally.

The long -term trend of the Indian stock market has risen, reflecting the continuous and expected trend growth of Indian listed companies.At the same time, the long -term excellent performance of the stock market also brought rich returns to international investors, and enhanced its confidence in its long -term allocation of Indian stocks.However, the emergence of "Black Wednesday" means that the Indian stock market and even the Indian economy cannot be at ease. The short decline in the stock market may be due to some accidental factors, but behind this phenomenonUnexpected factors and unsolved problems, these factors and problems make domestic and foreign investors always have an optimistic and cautious attitude towards the Indian economyGuoabong Wealth Management. Any wind blowing may make investors consider to close.

First of all, the trade deficit has increased, and the Basic India’s economy has always faced challenges.The long -term deficit of India may lead to a decline in foreign exchange reserves and fluctuations in exchange rates, especially the influence of international energy prices on India and the entire South Asian region is huge.The unstable and weak foreign exchange reserves of the Indian rupee have caused many people in the industry to worry that there will be a large outflow of foreign capital from India, and the Indian government will be difficult to cope.

Secondly, the problem of high unemployment rate cannot be solved, delaying the development of Indian manufacturing.At present, there is still a problem of high unemployment and imbalanced employment structure in India. The huge demographic dividend cannot effectively convert to high -quality labor.With expansion, India lacks enough high -quality human resources to complete these tasks.

In addition, the policy instability of the election year also makes many investors wait and see the emotions.Whether the policy can be continued and whether the reform slogan during the campaign will be implemented? These are issues that are very concerned about domestic and foreign investors.In recent years, for the Indian government, whether it is an attraction of foreign capital or the protection of the rights of domestic small and medium -sized investors, frequent changes in policies and regulations have discouraged many investors.

Generally speaking, after the state’s economic policy is stable and clear, investment will usher in the improvementSimla Stock. This is why many people in India are still optimistic about the development of India’s domestic economy in this fiscal year.As India’s rating and research institutions have recently said, India is expected to be among the ranks of high -income economies as soon as 2036, but maintaining a high growth rate and overcoming global trade challenges are the main obstacles of India to become developed economies. India wants to break through "The ceiling ", it is not easy to enter the economic power. It is impossible to do it by short -term stimulation and market optimism.

For India, macro -control and reform need to continue to work hard, and in terms of attracting foreign investment and international trade, it is necessary to target international high standards and focus on protecting the interests of investors.Essence(Source of this article: Economic Daily Author: Shi Pu Hao)

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