The fall of Indian share market and their side effects
A significant fall in the Indian share market can have widespread consequences, affecting not just investors but also the broader economy. Here's an analysis of the causes, side effects, and potential mitigation strategies. --- ### **Causes of a Market Fall** 1. **Global Economic Factors**: - Global recessions, geopolitical tensions, and financial crises can lead to a sell-off in Indian markets. - Examples: COVID-19 pandemic, 2008 Global Financial Crisis. 2. **Domestic Economic Challenges**: - Slowing GDP growth, high inflation, or fiscal deficits can weaken investor confidence. - Policy missteps like unexpected tax hikes or regulatory changes can also trigger declines. 3. **Foreign Fund Outflows**: - Foreign Portfolio Investors (FPIs) withdrawing funds due to global risk aversion or better returns elsewhere....