look news india
Indian domestic stock market has been witnessing continuous ups and downs for the last few days. Amidst mixed signals from global markets and selling by foreign institutional investors (FIIs), the Indian stock market sometimes falls into the deep waters of recession and sometimes tries to recover with the support of buyers. This is the time for stock market investors to trade and invest very carefully. The movement of Sensex and Nifty is testifying that both investor confidence and uncertainty dominate the market. In such a situation, it becomes very important to know how the trend of the domestic market as well as the Asian markets was and which stocks made huge profits and which suffered huge losses in today’s trading.
In the previous sessions in the domestic stock market, where there was a sharp fall in the indices due to heavy selling, the market also tried to recover to some extent due to value buying at lower levels. Bombay Stock Exchange’s main index Sensex and National Stock Exchange’s Nifty 50 are sometimes seen swinging between the green mark and sometimes the red mark. Analysts believe that this volatility in the domestic market is an indication that investors are keeping a close eye on every minute global news and economic data. When there is a big fall in the market, the activity of investors looking for buying opportunities in selected leading stocks increases, which provides support to the market for some time. However, despite this, profit booking dominates at the upper levels, which prevents the indices from rising further. Experts say that investors need to keep their portfolio strategy very balanced at this time because technically the market is going through an important phase.
The movements of Asian markets have always played an important role in determining the direction of the Indian stock market. In the latest trading session, the condition of Asian markets has been seen to be mixed and to some extent under pressure. While some buying trend was seen in Japan’s Nikkei 225 and Topix indices, Hong Kong’s Hang Seng and Shanghai Composite indices were seen trading with weakness. Globally, the policies of the US Central Bank Federal Reserve, possibilities of changes in interest rates and fluctuations in crude oil prices have increased the concerns of global investors. Due to Brent crude prices remaining high, there is increasing pressure on the global economy, which directly impacts emerging markets like India. The same global economic reasons are being considered mainly responsible for the continuous withdrawal of money from the Indian equity market by foreign investors. Unless there is stability in the global markets, there is every possibility that such volatility and breath-taking movements will continue in the Indian stock market as well.
It is a natural process for the shares to rise and fall in the daily trading of the stock market, but in today’s session, some selected shares made the investors rich while some caused huge disappointment. Buying momentum was seen in automobile, FMCG, select banking and select realty stocks, due to which shares of many companies were included in the list of top gainers. On the other hand, selling pressure was clearly felt in metal, select IT sector and energy segment stocks. Petronet, Select Financial Services and some stocks in the midcap-smallcap segment recorded strong gains, while shares of Tata Investment Corporation, Premier Energies, and some leading pharma and retail companies suffered profit-booking and fell in the list of top losers. Market experts say that before investing money in any stock, investors must check its fundamental strength, because in such a volatile market, the risk of huge loss in weak stocks is very high.
Data from foreign institutional investors (FIIs) and domestic institutional investors (DIIs) cannot be ignored while analyzing the current situation of the Indian stock market. Over the last few sessions, it has been seen that foreign investors are exiting the Indian markets as sellers and are continuously creating selling pressure on Indian stocks. On the contrary, our country’s domestic institutional investors i.e. DIIs and mutual funds have emerged as a major support system in the market. Whenever foreign investors sell shares in huge quantities, the strong inflow from domestic investors provides a strong safety net to the market. This is the reason that despite a big fall in the market, the Indian markets do not collapse completely and find an opportunity to recover from time to time. The increasing inclination of the country’s retail investors towards the stock market and SIP is also proof that the foundation of the Indian capital market is now stronger than ever and it has a better ability to withstand external shocks.
In this era of stock market, the advice of many financial experts and market gurus is that investors should not sell their shares in any kind of panic. Whenever the market falls, it brings a great opportunity for long-term investors to buy stocks with good and strong fundamentals at cheap prices. Experts suggest that instead of investing their money in any one sector, investors should diversify it across different sectors such as banking, pharma, auto and FMCG. Moreover, investing gradually through Systematic Investment Plan i.e. SIP instead of lumpsum is considered to be the safest way in the current volatile market. Investors should always prepare their portfolio keeping in mind their risk appetite and instead of being afraid of short-term fluctuations, they should focus on long-term financial goals so that they can take full advantage of this market movement.