The stock market refers to the buying and selling of stocks/shares, financial securities, and equities. If you've been a regular investor in the stock or share market, you must've heard quite often "why the share market is down today" or "Why Stock Market is Falling".
Published on 04 March 2023
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But have you ever wondered what this means? Is it good or bad? The answer depends on a few things. This article will help you understand why the market is Down Today or on some specific day.
Before moving on, let's first look at a few stock market basics.
How does the Share Market Work?
Share markets are regulated and provide a secure space where interested investors can transact in shares and other securities or financial instruments. Companies looking to raise additional funds or capital can easily list their shares for sale on the stock market while fully controlling their business.
Investors can sell and buy diverse types of shares and bonds, such as corporate bonds, to add wealth to their financial portfolios. However, it is vital to remember that even the share market comes with its share of risks. They are known for their volatility, as investors can make radical profits on some days and suffer compelling losses on others.
The biggest worry for investors regarding the share market is what if it falls or crashes and how it will affect them in such cases.
Factors that Cause the Share Market to go Down
A stock/share market crash occurs when the price of a share drops significantly in a day or two. It is connected to the declining global economy and poor performance in financial markets. When someone asks Why Share Market is Down Today? it mainly refers to the two markets known as NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
The factors that are the reason Why Stock Market is Falling are:
● Various economic factors
Variable interest rates, a declining economy, deflation, inflation, tax increments, financial and political changes, the changing value of the Indian rupee, and changes in economic policy are a few of the various economic factors that cause the fall of the stock market.
Such situations are beyond the control of investors, and they can cause an enormous change in the demand and supply of various goods and services.
● Demand and supply
This is another major factor in Why Share Market is Down Today or on a specific day. The prices of shares change due to changes in demand and supply equilibrium. For example, the share price increases when demand is high, but supply is low. On the other hand, when supply is high and demand is low, it causes the share price to decrease. When these changes occur on a larger scale, such as between various companies, it affects the entire share market.
● International events
What happens globally — the economic conditions of various countries can cause radical changes in a stable country, leading to war-like situations or even natural disasters. These events are unforeseen and cause significant changes in the share markets.
● Global/international markets
A primary reason why stock prices are falling is because of global economic trends. When the global economy grows or declines, it affects stock market prices on the domestic front. A worldwide decline can result in a drop in the Indian stock market too.
Conclusion
The stock market is volatile, so its fall or rise is inevitable. However, it is essential to note that market crashes are temporary, not permanent. The economy will always revive itself, no matter what. The factors mentioned above for why the share market is down today indicate that the market will rise again.
Additionally, not panicking in any situation will help you to know all market trends. Also, you must keep an eye out for any changing dynamics in the share market.
The core maxim of investment is to set realistic expectations regarding returns, so you can plan your goals and achieve them. A simpler way to understand the importance of assuming practical returns on investment is through an example.
Employees play an important role in the growth and development of a company. They are a driving force that keeps the company going. The efforts and diligence of employees is the key component for the expansion and success of a business.
If you plan to step into financial markets to invest long-term, you have to strengthen the basics! And, if you are wondering where to start, you can understand the difference between the primary and the secondary market. It helps you make the right choices based on your income and financial objectives in life. So, let us get started.
India has two leading stock exchanges, the National stock exchange and the Bombay stock exchange. Of these two, NSE is India’s leading stock exchange and 4th largest in the world. It is based in Mumbai and is the first exchange to offer trading based on a screen-based system.
BSE is much older than NSE and was Asia's first stock exchange. It is the fastest stock exchange in the whole world. It came into existence in 1875.
Volatility means a deviation from a share's designated returns over some time. The price keeps fluctuating rapidly, hitting new lows and highs, and is said to have higher volatility.
If you've just started your journey in the share market, the first thing you must know is that you need to open a Demat account with/ without a broker. The second most important thing is that you must understand the share market well and be well-versed in the core concepts that all investors need to know and have a firm hold on. Hence, having a good knowledge of the share market and learning the basics can help you grow.
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The core maxim of investment is to set realistic expectations regarding returns, so you can plan your goals and achieve them. A simpler way to understand the importance of assuming practical returns on investment is through an example.
Employees play an important role in the growth and development of a company. They are a driving force that keeps the company going. The efforts and diligence of employees is the key component for the expansion and success of a business.
If you plan to step into financial markets to invest long-term, you have to strengthen the basics! And, if you are wondering where to start, you can understand the difference between the primary and the secondary market. It helps you make the right choices based on your income and financial objectives in life. So, let us get started.
India has two leading stock exchanges, the National stock exchange and the Bombay stock exchange. Of these two, NSE is India’s leading stock exchange and 4th largest in the world. It is based in Mumbai and is the first exchange to offer trading based on a screen-based system.
BSE is much older than NSE and was Asia's first stock exchange. It is the fastest stock exchange in the whole world. It came into existence in 1875.
Volatility means a deviation from a share's designated returns over some time. The price keeps fluctuating rapidly, hitting new lows and highs, and is said to have higher volatility.
If you've just started your journey in the share market, the first thing you must know is that you need to open a Demat account with/ without a broker. The second most important thing is that you must understand the share market well and be well-versed in the core concepts that all investors need to know and have a firm hold on. Hence, having a good knowledge of the share market and learning the basics can help you grow.
Sharekhan Comtrade Private Limited (TM) operates the web site accessible from the URL www.myespresso.com (the “web site”').
Sharekhan Comtrade Private Limited is committed to protecting your privacy and utilising technology that gives you the most powerful, safe, online experience that you can get anywhere else.
Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.
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System Data:
Sharekhan Comtrade Private Limited uses your IP address to help diagnose problems with our server and to administer the web site. Your IP address is used to identify you and your shopping cart and to gather broad demographic information.
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The Web Site's registration form may require users to give us contact information (like their name, phone number and e-mail address), unique identifiers (like their PAN Number) and demographic information (like their pin code, age or income level). The Web Site uses customer contact information from the registration form to send the users information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Comtrade Private Limited's partners. The customer's contact information is also used to contact the visitor when necessary. Unique identifiers (such as PAN numbers) are collected to verify the user's identity. Demographic and profile data is also collected at the Web Site. We use this data to tailor the visitor's experience at the Web Site, showing them contents that we think they might be interested in, and displaying the contents according to their preferences. This information is shared with advertisers on an aggregate basis.
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Sharekhan Comtrade Private Limited may operate a number of co-branded sites. Policies regarding information collection and sharing may differ on some of these co-branded sites. If you have any particular questions, you should check the privacy statement that appears on each co-branded site.
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The Web Site uses an order form for customers to request information, products and services. The Web Site collects visitors' contact information (like their mobile number or e-mail address), unique identifiers (like their PAN number) financial information (like their account or credit card numbers) and demographic information (like their pin code, age or income level). Contact information from the order form is used to send orders, information about Sharekhan Comtrade Private Limited, and promotional material from some of Sharekhan Comtrade Private Limited's partners to the visitors of the Web Site. The visitor's contact information is also used to get in touch with the visitor when necessary. Financial information that is collected is used to check the users' qualifications and bill the user for products and services. Unique identifiers (such as PAN numbers) are collected from Web Site visitors to verify the user's identity.
Surveys and Contests:
The Web Site's online surveys ask visitors for contact information (like their mobile number or e-mail address) and demographic information (like their pin code, gender, age or income level). The Web Site uses contact data from its surveys to send the user information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Ltd.'s partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below. Demographic and profile data is also collected at the Web Site. The Web Site use this data to tailor its visitor's experience at the Web Site, showing them content that it thinks they might be interested in, and displaying the content according to their preferences. This information is shared with advertisers on an aggregate basis.
Sharekhan Comtrade Private Ltd run contests on the Web Site in which we ask visitors for contact information (like their e-mail address). Sharekhan Comtrade Private Limited uses contact data from its contests to send users information about Sharekhan Comtrade Private Ltd. and promotional material from some of our partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below.
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Sharekhan Comtrade Private Limited engages the services of an outside advertisement company to display advertisement on the Web Site. These advertisements may contain cookies. While Sharekhan Comtrade Private Limited uses cookies in other parts of the Web Site, cookies received with banner advertisements are collected by the Advertisement company, and Sharekhan Comtrade Private Limited does not have access to this information.
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Disclosure of Customer Information :
Sharekhan Comtrade Private Limited and www.myespresso.com shall not deliberately disclose customer's personally identifiable information to any unauthorized third person, save and except where such information shall be disclosed in good faith and for the purpose of law for the time being in force or to protect the rights and property of Sharekhan Comtrade Private Limited and www.myespresso.com.
Public Forums :
The Web Sites makes chat rooms, forums, message boards and/or news groups available to its users. Please remember that any information that is disclosed in these areas becomes public information and you should exercise caution when deciding to disclose your personal information.
Supplemental Information :
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The Web Site DOES NOT entice by the prospect of a special game, prize or other activity, to divulge more information than is needed to participate in the activity.
Further to the above, in light of the recently notified Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. (Hereinafter referred to as the Rules)
The following shall be deemed to be sensitive information :
Password;
Financial information such as Bank account or credit card or debit card or other payment instrument details;
Physical, physiological and mental health condition;
Sexual orientation;
Medical records and history;
Biometric information;
Any detail relating to the above clauses as provided to body corporate for providing service; and
Any of the information received under above clauses by body corporate for processing, stored or processed under lawful contract or otherwise:
provided that, any information that is freely available or accessible in public domain or furnished under the Right to Information Act, 2005 or any other law for the time being in force shall not be regarded as sensitive personal data or information for the purposes of Rules.
Collection of Information:
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In order to provide any further information to be provided to regulators.
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Clients would be allowed an option not to disclose any information to be collected, provided the same is in compliance with regulatory requirements.
Disclosure of information:
Disclosure of sensitive information would be as per the terms agreed by the clients. For any change in such terms, the clients would be informed.
Provided no consent may be required in case the same is being shared as per compliance guidelines or as required by regulators.
Any information being disclosed to third parties would be in accordance with the Rules and would be done provided such third party has the same level of compliance guidelines as Sharekhan Comtrade Private Limited.
Sharekhan Comtrade Private Limited shall allow clients to review their personal information and the same shall be allowed to be edited provided exchange guidelines relevant to the same are followed.
Sharekhan Comtrade Private Limited shall maintain reasonable security practices and procedures and maintain a comprehensive documented information security programme. In the event of an information security breach, Sharekhan Comtrade Private Limited or a person on its behalf shall be required to demonstrate as and when called upon to do so by the agency mandated under the law, that there have implemented security control measures as per their documented information security programme and information security policies and information security policies that contain managerial, technical, operational and physical security control measures that are commensurate with the information assets being protected with the nature of business.
KYC Languages
Download Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don't's) in Vernacular Language :
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