The GDP growth figure came in at 7.8%, and after that, look at the condition of the market—it has gone completely cold. If it had been any other country or economy, the Nifty would have gone up by at least 78 points, but the Nifty fell instead.
However, we will not talk about the GDP figures; we will discuss what our Prime Minister has said. He stated that our GDP figures are excellent, but then he also said that people should not buy gold and should avoid foreign travel.
So, the logical question is: if everything is going so well, why shouldn’t we buy gold or go on foreign trips?
Let’s look at this with an example:
Suppose a person works hard the entire year, earns money, and pays taxes. After all that, if they cannot spend their own money according to their own wishes, what is the point? If you look at it, a 7.8% growth rate is outstanding. Even after such massive growth, if you tell people not to buy gold and not to travel abroad, then when will they do it? Will they do it when the growth rate hits 15%, or after that? Often, such negative statements plant doubts in the public’s mind about the government itself.
If everything is going smoothly then why Narender Modi ji make this statement? Since the stock market runs on sentiment, the market crashed because of this statement and also few below major points are the reason for today’s market fall.
Surge in Crude Oil Prices: Due to ongoing tensions in the Middle East, the price of crude oil jumped by more than 2%, For India, expensive oil always increases the fear of inflation.
Reversal in Banking Stocks: Major banking stocks, which were rallying over the past few days, witnessed profit-booking today, causing the Nifty Bank index to drop by up to 1.1% during the day.
Auto Sales Week Data: The car sales figures for the month of August turned out to be weaker compared to July. Consequently.
In The Broader Market: The Nifty Midcap index fell by up to 1.39% today, indicating that investors heavily dumped small and mid-cap shares.