Stock Market: Will the stock market crash even faster? Read what experts are worried about.

News Topical, Digital Desk : The stock market's movements have worried global leaders. Experts believe that what's happening in the Middle East is bound to have a global impact, but the stock markets aren't experiencing the expected impact. Experts believe the market is currently waiting for the picture to become clearer, and it may take weeks for the full impact of the war to become apparent.

Indian markets saw a sharp decline on Wednesday, with the Nifty closing down 385 points. However, the index recovered more than 150 points from its lows. Zerodha's Nithin Kamath tweeted that the market appears too calm compared to the current situation, and this is what is fueling fear. Goldman Sachs CEO David Solomon also described the market's reaction as "extremely calm," saying he was surprised. Speaking at a business conference in Sydney, he said that given the severity of the ongoing conflict in the Middle East, the market's reaction was much calmer than expected. According to Solomon, financial markets typically react sharply to geopolitical events only when they directly impact economic growth. Currently, investors believe the impact of the conflict is limited, which is why the market is not panicking. Solomon believes it will take some time for the market to understand the true economic impact of current events, and based on that, market action will be seen. He believes that many things remain uncertain—such as how long the conflict will last, how much impact it will have on energy supplies, and what impact it will have on global trade. This is why the market remains cautious but calm. However, as the picture becomes clearer, the market may react sharply in the same direction. 

A further decline of 5 to 10% from current levels is possible. According to market expert Anand Tandon, no one can predict how long this war will last. He believes that Iran's resistance raises concerns that this war could be prolonged, and if that happens, it will be very negative for India. However, he noted that domestic markets were already sluggish and were delivering limited returns compared to the rest of the world. Meanwhile, foreign investors have continued to exit the market, meaning selling pressure was already present, so it's possible the market is currently waiting for these signals. However, he added that the only cause for concern is that valuations remain quite high. He believes that there are still many emerging markets where earnings growth is better than ours, but valuations are lower. This means that our valuations are expensive compared to some markets. According to him, a 5 to 10% decline is possible at the Nifty level. 
 

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