Global Share Markets Hit Amidst Increasing Crude Oil Prices

There has been a sharp fall in the Indian share market on Monday, 24 January 2022. Nifty 50 closed at 17,150, falling over 450 points, and BSE Sensex fell 1,545 points to close at 57,500.

Within the past few days, the Indian share market has seen an erosion of around Rs. 19.5 lakh crores. Share prices have been quite low for companies such as Nykaa, Paytm and Zomato. Scroll through to understand this scenario!

How Is the Global Market Performing?

Some other countries across the world are also experiencing a similar trend. The global market crashed amidst an alarm of war between Russia and Ukraine and increasing crude oil prices. FTSE 100 of Europe fell over 0.5%, Nikkei 225 of Japan fell nearly 2%, and Dow Jones of USA fell over 4.5%. However, the share market of China has been rising, opposed to this global movement.

Why Have the Markets Crashed?

Several reasons are responsible for the fall of the global share market. Go through the vital causes below!

Terror of War Between Russia and Ukraine

• Russian troops have been merging near Ukraine border for a long time.
• The dispute related to the Donbas region of Eastern Ukraine has grown to a disappointing level.
• Although the USA has made efforts to resolve this issue, Vladimir Putin (Russian President) is not up for an agreement.
• Putin has expressed an objection against Ukraine’s admission to NATO.
• Experts and media reports are hinting at the possibility of a war between these countries, thus shaking the global market.

Prices of Crude Oil

• From October 2014, prices of crude oil have been reaching the highest level.
• The trading price per barrel was $ 88.76.
• This has raised rates of inflation to a great extent.
• USA’s inflation figures have seen a substantial rise during the past 32 years.

Interest Rates of USA

• The Federal Reserve can increase rates of interest due to USA’s rising inflation rates.
• This may bring about global market adjustments since the money will be entering from the stock exchanges to the banks.
• That is another cause of an unstable global market.

FPI Outflow

• During last week, FPIs (foreign portfolio investors) in India have been selling their securities extensively.
• From 19 January to 24 January, FPIs extracted Rs. 10,350 crores from the share market of India.

Parting Words

As per analysts, the Indian share market will be following the global movement until Budget 2022. After the presentation of the Union Budget by the Finance Minister of India (Nirmala Sitharaman), new policies will be guiding the market. However, the bear market can be advantageous for individuals planning investments in large-cap entities.

Frequently Asked Questions

1. What is the price of each share of Zomato?

As of writing, the price of each share of Zomato on the NSE is Rs. 91.10.

2. What is the share price of Paytm?

As of writing, the share price of Paytm on the NSE is Rs. 903 apiece.

3. What is the current share price of Nykaa?

As of writing, the price of each share of Nykaa on the NSE is Rs. 1,627.70.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.