Threat of recession in America: Big fall in stock markets around the world including India, what next?

Manufacturing figures in America were much weaker than the experts' estimates. This led to a big fall in the US stock market. Some economic experts are also expressing the possibility of an economic recession in America. The weak performance of the US market affected the stock markets around the world including India and they also fell heavily. Let us know what the effect of this global decline is going to be.

Indian stock market fell sharply on the last trading day of the week. Sensex and Nifty opened with a huge fall and could not recover till the end. Sensex closed at 80,981.95 with a fall of 885.60 points i.e. 1.08 percent. At the same time, Nifty plunged 293.20 points i.e. 1.17 percent and closed at 24,717.70 points. Other global markets including America, Europe and China also showed a big decline.

Reasons for decline in Indian stock market
The Indian stock market fell due to heavy selling in American, European and other Asian markets.
The quarterly results of many companies were not as per the expectations of the investors. This also accelerated the selling trend.
Oil prices increased due to concern about supply disruption in the Middle East. This spoiled the market mood.
The news of tension between Israel and Iran increased geopolitical tension and spoiled the investment environment.
US dollar rates and treasury yields also increased. Due to this, foreign investors sold in the Indian market.
Risk of recession increased in America
The fear of recession in America is increasing again. Especially, due to weak manufacturing data. Due to this, Wall Street stocks fell. In Europe too, the stock market took a huge dive after disappointing bank earnings. All three major indices in America closed down. The Nasdaq Composite recorded the highest decline of 2.3 percent.