March 15, 2011 by akhilendra
Impact of Japan crisis on Stock Market
As news of nuclear radiation leakage in Japan is spreading across the globe, concerns related to socio-economical status of the country are also growing. Nuclear reactors in Japan were damaged by the massive earthquake and Tsunami which has hit the country last week. Initially picture was not clear about the damage which it has caused to the Japan but as now picture is getting clearer now; apprehensions are rising across the globe.
Recent new reveals that radiation leakage which happened in its one of the nuclear centre due to the explosion in its nuclear reactor is large enough to hurt human lives. This catastrophe is the biggest country had seen in the last few decades. News of human life getting hurt due to nuclear radiation is big enough to shake the entire world. Repercussions can be even bigger.
Japan has faced huge economical and human loss in this natural disaster. It is going to take some time before it can recovers from it and therefore, experts believed that Japan may get pushed into an economical recession. Japan is one the biggest economy in the world. If it slips into a recession, it will be a big blow to the global economy.
Stock market in India also felt the tremors today and BSE Sensex lost 1.47 per cent to close at 18167.64 and Nifty closed at 5449.65. Volatility is expected stay here for some time as situation in Japan is unclear and yet figures about the exact damages are not out.
Investors are also expecting a rate hike by Reserve Bank of India to control the inflation which is moving at 8.31 per cent. But at the moment, Japan is the main factor. If situation is Japan further worsen then stock market across the globe would be affected and damage would be much deeper.
In the short term, investors will prefer to stay away from the market.
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