Reasons:
- The major reason is the immediate run of January wherein all midcap and below Market cap stocks rose exponentially resulting into out of the park fundamentals.
- PSU rally not supported by Q3 results.
- SEBI-Vmarc crackdown resulting in poor confidence.
- ED-Zenith Hawala Scam resulting in cracking of 15-20 stocks
- RBI-JM Finance crackdown to stop supporting lending for IPO
- General RBI strictness against Loan against Shares (LAS).
- Elections (Confirm whom to win yet withdrawals for spending)
- Advance Tax (People tend to sell the riskiest and small-mid cap stocks first, rational person would sell NELCO, Tata Tele, Voltas and later TCS and Tata motors even though they are of same group)
- SEBI Chairperson Madhabi Puri Buch’s statements on SME and small caps resulted in broader fall.
- Geopolitical tension between Russia-West and India-China which pop up every now and then. In rise it is ignored and in fall it just trends.
- Ripple Effect of everything started a sell off, normally it falls 2% recovers 1% but the ripple effect caused falling for consecutive days and now everything is on a roll towards the pit of the fall.
There might be other reasons, or the above stated reasons might not actually be resulting the fall.
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