Greetings friends!

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Nifty50 is the biggest stock index of India. Today, it opened about 400 point gap up but then selling started and it closed almost one percent down from the previous day closing point. Indian stock market is falling continuously while other global markets are up. This seems very strange but it is not difficult to understand.

First of all, India is a big crude oil importer. Hormuz crisis has damaged the supply for India and India have to buy oil paying heavy price and that price is in USD. Also, India imports edible oil, lentils etc. from abroad. So, Indian currency is continuously under pressure. It has declined almost 50% since 2014. It can go further down.

Apart from it, India is under the pressure of the US. US wants India to import its goods without taxes while it is imposing import duty on Indian goods and services. AI is also another reason.

But, the most important thing is the crony capitalism. Indian institutes are doing whatever the government tells them to do. They are taking arbitrary decisions and changing policies regularly. So, the foreign investors are thinking that India is not reliable. Without ensuring independence of the institutions, no country can become reliable and safe for the investments. Will this change or will the market go further down? It seems that policies won't change. Government is not going to realize that it is doing anything wrong. For example, it is not considering to cut taxes. In fact, it is increasing taxes and also adding more taxes on businesses.

What do you think?