There are a number of reasons due to which Sharemarket has fallen today.
- Indo China tension in Pangong Tso Lake area which is renewing the tensions between two countries
- India is likely entering its deepest recession on record, which is expected to run through the second half of the fiscal year.
- Markets were overbought and at euphoric levels
- There are some confusing rules of SEBI around Pool account-liquidation and collateral account-liquidation where a lot of investors are fearing
Would the downfall continue for some more days ?
Most likely. Post-market the GDP numbers have come through. GDP for the first quarter has shrunk by about 24%, which is not a good sign. Fiscal deficit for this year is feared to be around 7% which is very high