We see at Now the Indian Money (Share) Market is in Danger Zone because before this, similar incidents had happened in the last every 16 year two incidents in 1992 and 2008.
Emotional Causes (16 year) of Indian Money Market is in Danger Zone
1992 Causes
On April 28, 1992, the market fell by 12.77%, which at that time was the biggest fall that ever shook the stock market. This is Harshad Mehta scam. Exactly 16 years later, another big fall occurred on 21 January 2008, in which the market fell by 1408 points and investors lost Rs 17605 crore.
2008 Causes
In 2008 itself, Reliance Power had a IPO (Rs 11,562.20 Cr), which was subscribed 73.04 times on Jan 18, 2008, Nearly $9 billion of market capitalization was wiped out and investors lost billions in assets.
2024 Causes
Now, 16 years later in 2024, the market continues to trend upward and it looks like some groups are planning to continue this trend going forward. People think it’s all about money, that’s everything.
Now HMIL’s IPO (₹25,000 crore) will come in 2024. It is normal that it will also get full subscription and India’s IPO market is buzzing like a money machine.
International Causes (16 Year) of Danger Zone
1992 Causes
The 1992 sterling crisis was a financial crisis that occurred on 16 September 1992 when the UK government had to withdraw sterling from the (first) European Exchange Rate Mechanism (ERM I). The fall of the pound sterling forced Britain to exit the European Exchange Rate System (ERM). We known as a Black Wednesday.
2008 Causes
After 16 year in 2008, Lehman Brothers went bankrupt under the burden of $613 billion in debt, much of it due to investments in subprime mortgages. The stock market fell 777.68 points in intraday trading. This was the biggest decline in the history of that time. The immediate moment of the market decline was when Congress initially refused to pass a bank bailout bill that would have stabilized the US financial system after several historic shocks that had plunged the US into recession.
2024 Causes
Now after 16 year in 2024, challanges are started in the world. Economy of the world are unstable and go in recession. Also US in recession as compare to 2008 situation are the same. Big Amrican Banks are collapse in near current year. The Banks are Republic First Bank, Citizens Bank, Silicon Valley Bank. So 2024 is very fearfull for the traders. So think about your money because now the Indian Money (Share) Market is in Danger Zone.
Domestic Causes (16 Year)
1992 Causes
In 1992 The Indian stock market crisis was a financial scam. Harshad Shantilal Mehta along with other bankers and some people had manipulated the Bombay Stock Exchange. The scam caused major turmoil in India’s stock market and investors lost more than ten million US dollars. In the early 70’s, banks in India were not allowed to invest in the equity market. At that time, traders in the stock market were also about 1% to 2% of the Indian population. Even at that time everyone wanted to know about the money (share) market. Stock Market was continuously going upward and suddenly when the market explosion occurred everyone went out.
2008 Causes
After 16 year in 2008, happen mainly because of problem from other countries. BSE fell 1,408 points to 17,605, causing the biggest decline in investors’ wealth. This is called Black Monday. Financial institutions blamed for the Great Crisis, because they made trillions of dollars of risky mortgage loans and packaged, repackaged, and sold those loans to investors around the world. Big hedge funds like HSBC Mutual Fund and JP Morgan took out their money from the Indian market and invested it in the US market where they were getting good returns.
Due to shortage of money in banks, interest rates had become very high. Unemployment was also very high. Because people did not repay bank loans, home loans and the great recession that followed, many people lost their jobs, their savings and their houses.
2024 Causes
Now after 16 year in 2024, If you leave the stock market, nothing else is going well. Inflation is very high, food inflation is very high, unemployment is also very high, there is a shortage of money in banks due to which interest rates are high, loans not being repaid, unsecured loans are also increasing, Debt to GDP Ratio also high.
We see the stock market going higher and higher every time, stocks and market valuation are very high, as if someone is pumping the market. Now the process of inclusion of Indian Government Bonds (IGBs) in the JP Morgan-Emerging Markets (EM) Bond Index will begin on June 28, 2024, which will completed in 10 months by March 2025.
Presently the situation of Indian market is very dangerous, because high net worth individuals have hold on the market and they do not want to step back from the market. The market will fall any time soon.
