The month of July was extremely disappointing for the Indian stock market. In this month, the Indian stock market has recorded the biggest decline of 17 years. Figures show that in July 2019, the Nifty has rolled 5.68 percent, while the Sensex dropped 4.86 percent. Such a bad condition of the stock market was witnessed in the year 2002. Then in the month of July, the Nifty had broken down by about 9.3 percent and the Sensex by about 8 percent.
July is generally considered a good month for the stock market. This time, due to the general budget before the second term of the Modi government, the market also had expectations. But after the presentation of the general budget on July 5, the stock market saw a historic decline. Apart from this, the condition of the market was also disturbed due to delay in monsoon, poor results of companies and Sluggish economic growth.
According to market experts, the most common budget has affected the stock market in this month. Actually, the investors had great expectations from the general budget, but they felt disappointed. Not only that, long-term capital gains tax has been increased for foreign portfolio investors (FPIs). At the same time the government also rejected the demand for exemption in it. Auto sector is also responsible for the bad times of the stock market. Under the leadership of Maruti Suzuki, the auto sector stocks crashed in July.
Loss due to foreign trade
Market analysts say that overseas factors also worked in the market under pressure from the stock market in July. Due to the fear of US job data and trade war this month, the market condition worsened.
