Shares, gaps in gold and silver: Erosion of crores of rupees

Ahmedabad. 24 September 2020, Thursday

With global investors and funds withdrawing their investments in other assets, including precious metals, on the back of the possibility of a second phase of the global Corona epidemic, new challenges, including fears of a slowdown in the global economy once again this week. The stock market as well as gold-silver gaps have eroded crores of rupees from investors.

Corona transition has once again increased in the United States as well as in various countries in Europe. India is no exception. On the other hand, the uncertainties prevailing in the United States in presenting the post-epidemic relief package also had an adverse effect on the market. In addition, a cautious approach is being taken on the issue of the upcoming US presidential election.

In the midst of this unfavorable environment, investors turned away from gold-silver as well as other assets and the dollar index rose to a two-month high of 2.50. According to analysts, the dollar is likely to weaken further in the coming week as the dollar strengthens. The Sensex plunged as much as 1,112.5 points to 3.50 on the back of panic reports from the stock market in Mumbai. The Nifty, on the other hand, lost all its key levels and fell by 3.50 points to 10,608.

It may be mentioned here that the stock market has been steadily retreating for the last six sessions. As a result, a huge amount of Rs. 11.5 lakh crore has been eroded.

Gold and silver also continued to retreat this week on the back of global markets. At the Ahmedabad gold-silver market here today, silver gained more than Rs. With a gap of Rs. 2000 was landed. Thus, in four days Rs. A gap of 200 has been reported.

On the other hand, Ahmedabad gold today gained more than Rs. After breaking 200, it came down to the level of 2100. Even in gold, Rs. A gap of 2100 has been reported.

3 main reasons behind the crash

The panic-stricken sell-off from Chomer has once again sent shockwaves through the Indian stock market. Let's take a look at the main reasons behind the market crash

Re-lockdown: Corona re-headcase cases have risen sharply in European countries. Reports that other countries, including the UK, Italy and Greece, are considering re-implementing the lockdown with stricter restrictions have adversely affected global markets.

Dollar strength:

Global stock markets have been forced to retreat amid fears of a slowdown in the global economy as the dollar strengthens and the Koro epidemic intensifies. The MSCI World Index has been falling for five consecutive days, pushing it to a two-month low.

Local Adversity:

Economic activity has resumed after massive home lockouts, but the overall decline in people's purchasing power in the wake of the epidemic has not had a positive effect. Recently, various rating agencies have lowered India's GDP target.

F&O Expiry

On the last day of F&O expiry today, the Volatility Index India VIX intraday jumped 14 per cent to 3.7. On the other hand, the Nifty had a rollover of 7% and the Nifty Bank had a rollover of 4%. Which is the lowest rollover level in the last six months. The issue also caused panic in the market.

Gaps in heavyweight stocks

Heavyweight stocks today reported huge gaps in the sell-off from Chomer. In addition, the IT index was down 2.4 per cent today, with huge gaps in IT stocks.