Will stock market crash again ?

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Starting from January everything was good people were opening fresh positions in stocks which they found attractive as they were looking attractive enough at that time also. There were stocks some of them were making fresh highs some were making upper circuit daily and as usual some stock which were struggling. And there comes a time when people get a introduction of Coronavirus in February, again till february no one were aware about what the hell is coming and there comes a time where market started reacting on this virus. As time passes Indian market started to struggle and made lower circuit in couple of sessions. And the day comes where NIFTY50 made a bottom(as of now). And then market started recovery buy making down swings. 

From a record low to 4 month high Nifty recovered from 7610 to 10393. So a question arises is that the bottom or we are gonna see a downfall in near future?

So here are some possible outcomes that can be the reason for next crash.

1. Second wave of Coronavirus:-

Nowadays there is tension globally regarding this concern as WHO warned about second wave of this could arrise. European Countries are at high risk according to a report. Number is increasing drastically globally day by day. 

2. Poor results of companies for 1st Quarter of 2020-2021:-

Analyst believes that this can make a major impact on market when companies with strong financial background delivering poor results.

3. Chances of Insolvency:-

If Govt. fails to provide proper stimulus to the struggling sector then chances of filling insolvency will increase like recently we saw a German company filed for an insolvency.

4. A Downfall can be seen in Banking sector:-

It is obvious that before this pandemic also NPA(Non Performing Assets) were increasing quarter by quarter and in this situation it can be said that Banking or Financial sector has to suffer with this issue.


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