Sensex drops huge; More Volatile times ahead!

BSE Sensex dropped 276.46 points and ended on 54,088.39 on Wednesday and Nifty dropped by 72.95 points to mark 16,167.10 points. Factors that lead to this huge drop are not one but many. US stocks are showing down trend due to the highest inflation rate that country has seen in 4 decades. European Union has put more sanctions Russian oil to end the Ukraine War.

Adding to these factors, Indian markets are unable to understand the inflation rates in India. Government measures to combat inflation haven’t been effective. RBI increased repo rate by 40 points and USA too is trying to increase interest rates to combat decrease in federal reserves. Energy resources industry that is highly dependent on petroleum is facing crisis.

Stocks like Coal India have been dipping down further and a total of 2,453 shares have been on a decline while 885 have shown positive growth. LIC IPO debuted on a huge low due to the current situation and Delhvery is going to debut soon.

Those who are planning to invest it is not the right time for sure. Mutual Funds stocks have dropped by 44% this April and foreign investments in India have dropped by 3410 Million USD. The tough times are indicating recession ahead and caution is advised before trying to invest big in the markets.

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