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lehman brothers crisis now us stock market economy again collapse inflation peak impact on india detail – Business News India


If a leaf is shaken in America, then the world feels like a storm. Even though it may sound like a proverb to you, it is true to some extent. This time, not only leaves are moving in America’s economy, but the sound of tornado is also being heard.

Things getting worse: In the US, inflation figures are at the top of 40 years, then in the case of decline, the stock exchanges seem to be repeating the story almost 14 years old. Then the situation worsened due to the bankruptcy of the banking firm Lehman Brothers and apart from America, stock markets around the world including India were seen crawling. This time, the situation is a bit opposite and dire.

The main reason for the Ukraine-Russia war: This time the Ukraine-Russia war and the Corona crisis have increased the trouble of the global economy including America. In such a situation, due to the effect on the supply chain, the rate of inflation is also increasing rapidly. The faster this rate of inflation is increasing, the faster the economy seems to be deteriorating and the stock markets are falling.

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Entry made in beer market: The US stock market index – the S&P 500 – has lost more than 20% since its January highs. With this the S&P 500 has entered the bear market. Another index – the Nasdaq – is already involved in the bear market. It has broken more than 25 per cent this year.

Let us tell you here that the bear market gives information about the financial condition of the stock exchange of the country. These are bad signs for the economy of any country. That is to say that the American stock exchanges are indicating that the situation is not normal.

Coming back to 2008: Seeing the atmosphere of the US stock market, investors are reminded of the recession of 2008. Christian Hoffmann, portfolio manager at Thornburgh Investment Management, points to the recession, saying that liquidity has become so bad, we are remembering the black trading days of 2008. According to Hoffman, the liquidity in the market is worse than in the Lehman crisis. This crisis can go on and on.

India was also affected: Let us tell you that when the American banking firm Lehman Brothers went bankrupt, the Indian stock market went into the abyss. The Sensex, which was at the highest level of 20 thousand points in the early months of 2008, fell to the level of 8 thousand points within a year. Then the Sensex had broken about 12000 points or more than 55 percent.

What is the situation now: There has also been an outcry in India due to the deterioration of the stock market of America. The major index of the Indian stock market – Sensex has come down about 10 thousand points from its all-time high 62,245 points. The Sensex touched its all-time high on 19 October 2021. Currently, the Sensex is below 53 thousand points and is about to reach a 52-week low. On 18 June 2021, the Sensex came at a low level of 51601 points.

The crisis will increase now: All the experts are telling that after the decisions taken by the US Central Bank- US Fed on Wednesday, the sell-off in the Indian stock market may increase. It is estimated that the US Fed will announce changes in interest rates to control inflation. This time it can announce a 0.75 percent increase in interest rates. This will be the biggest increase in 28 years.

Earlier, in November 1994, the interest rate was hiked so much. If this happens, then a new opportunity will be created in the US market for the foreign investors who are continuously exiting the Indian stock market and they can increase the sell-off. This will further fall in the Indian stock market.

Read this-WPI Inflation: There was a setback on the inflation front, wholesale inflation reached a record level in May

However, to deal with inflation, central banks around the world including India are taking various measures at their level. Under this, RBI has also increased the repo rate twice in a month. However, despite this, the Indian stock market has not got any solid boost.



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