InvestorQ : What was the reason for the stock market crashing sharply on 28 October?
vidhya Laxmi made post

What was the reason for the stock market crashing sharply on 28 October?

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sarah Leo answered.
3 months ago
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There were several reasons both global and local. But the major reason was unwinding of positions in India in reaction to global cues. On Wednesday, 28 October when the stock markets crashed in India, the total wealth loss was close to Rs.1.56 trillion.

There have been valuations concerns for some time now. However, the markets suddenly appeared to have run up against a wall of worry on 28 October and the reason appears to be entirely global in nature having an impact on Indian markets.

It must be underlined that Indian quarterly results have been fairly favourable and there is not much to worry about at the India level in terms of quarterly performance of companies. There are clear and distinct signals of a recovery underway.

Globally, there are certainly some worries over the rising pandemic cases and also the acute uncertainty created over the US presidential elections. While there is also one side of the story that many global investors may prefer Indian stocks as a hedge.

For now the presidential battle appears to be a close call and the statements coming from both the sides about their India strategy appears to be substantially confusing. The biggest palliative could come from progress on testing the vaccine to satisfaction.
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