Indian Stock Market Declines, Investors Lose up to 7 lakh crores Rupees. India has sufficient Foreign Exchange Reserve Says RBI.
On Monday, there is a steep fall of share value in Indian Stock Market. Reacting to this the Finance Minister Arun Jaitley said External Factors are responsible for this fact. No single domestic factor is involved. Indian Stock market fall is completely based on the external factor.
This Stock Market situation is keenly observed by the Central government and by the Reserve Bank. This is happened because of the China Yuan value went down. This is only a temporary one and it will be settle down soon.
Reserve Bank of India Governor, Raghuram Rajan states that Indian Economic status is in good condition. India has sufficient foreign exchange reserve of about 25 lakh crores Rupees.
The decline in China money value and also due to America increase in interest rate the Asian countries faces the heavy fall of stock market. This leads to the Share holders to lose up to 7 lakh crores Rupees.
Early Indian Stock Exchange Sensex gone down by 1,741.35 points and closed at 25,624.72 points and this is a third heavy falling in about 7 years.
Mumbai Stock Exchange Sensex gone down by 1,624.51 points and closed at 25,741.56 points and National Stock Exchange Nifty declines to 490.95 points and closed at 7,809 points.
Main cause of this is due to the China’s Share value decline. This made China’s share holder to sell the share and it 9% decline in the share market of China. China didn’t take any steps to stop this declination as it done before.
China had devalued its Money recently, so if steps are taken to stop the decline of stock market by the reserve money of China it will affect the economic status of China and just watched the down of Share Exchange.
Other one reason is America has announced to raise the interest rates recently. This made the Foreign Finance Companies and share holders to invest their shares in that country and sold their maximum shares.
Next to the China Stock Exchange Market India’s Stock Exchange Market made profitable to the Share holders up to 31%. At this stage it India Stock Exchange Market has seen a heavy decline.
This Loss does not affect long term investors; it only affects the buys and sellers of the stock market. Indian Currency is affected by this. Indian Rupee sinks from 64 at the weekend to 66.74 against the dollar value.
Malaysia ringgit faced the fall 17 year low. Turkish lira and also South Africa rand suffered and faced the low value.