look news india
There is huge turmoil in the stock market today, due to which the heartbeats of investors have increased. Domestic markets Sensex and Nifty have faltered badly in the early trading of the week. Sensex is trading more than 100 points lower, while Nifty has slipped below the psychological level of 24,150. The biggest reason behind this market decline is the huge tsunami in Asian markets, especially the historic 8% fall in the Korean index ‘KOSPI’ which has scared global investors.
Why is the market falling? Know the big reason
Market experts believe that this decline in the domestic market is mainly the ‘effect of global sentiments’. The effect of heavy selling in Kospi is visible on other Asian markets as well as Indian markets. Selling by foreign institutional investors (FIIs) and an environment of uncertainty at the global level have reduced investor confidence. Apart from this, due to Nifty not being able to hold the level of 24,150 at the technical level, there has been further selling pressure in the market.
What is your advice for investors?
In view of this decline in the market, experts believe that panic selling can be a loss-making deal. At present the market is in ‘hyper-sensitive’ mode. Experts recommend that long-term investors should look at this decline as an opportunity and keep an eye on stocks with good fundamentals. However, intraday traders need to be very careful as the market may see huge volatility in the next few hours.
What will happen next now?
The eyes of the Indian market are now fixed on the US market signals and global commodity prices. If Nifty defends the lower level of 24,100, then recovery in the market can be expected. At present, investors are advised not to take much risk in their portfolio and wait for the market stability. Global market pressure at this time is like a testing time for domestic investors, where only patience and use of right stop-loss can save you from big losses.