Reasons for Market Crash in April 2021

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The Stock Market from the beginning of the April month was either in red numbers or showed a low growth. Both the market indexes didn't show a healthy recovery. Here are the reasons why there are signal of a start of bearish run in the market:

Reasons
  • Increase in Covid-19 Cases: There is a steep rise in the corona cases in India as well as the whole world which created a fear in the minds of investors.                            
  • Fear of Lockdown: As the number of corona cases are increasing and the states being forced to implement night curfews and weekend lockdowns which shows a fear factor that short term lockdowns can be implemented if the same situation prevails.

  • Increase  in Bond Market Yield: The increased interest rates in bonds investment return leads to a change in investor's mindset of shifting from stock investments to bond investments.                                                                                      
  • Pulling back of money by FIIs: Many Foreign Institutional Investors Are withdrawing their money after making profits from Indian Markets due to the fear of increasing corona cases.                                                                                                     
  • Market Correctness: Due to a past high bull run the market is progressing towards a short bear run and due to excess hike in share prices of companies there is a correctness in share prices.




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