Thursday turned out to be a very bad day for the Indian market. The market started with a rise today, i.e. June 16th. But at the end of the trade, it closed down around 2%. Nifty was seen breaking its psychological support level of 15400 today. Nifty hit a fresh 52-week low in today’s trading. The market started with bullish momentum today, but the decline in the afternoon trading session was seen increasing as bad signals came from European markets.
The market was waiting for the decisions of the Bank of England. Experts say the Bank of England may also raise interest rates by 0.25% to curb inflation. Most analysts believe that the US Fed’s interest rate hike was more or less in line with expectations. The US Fed will stick to its rate hike policy until inflation is brought under control.
How will the Indian market evolve?
The analyst believes that the pressure on the Indian market will continue in the short term. During the remainder of fiscal year 2023, the market can be seen moving into the beer market zone. Aggressive rate hikes around the world will put pressure on demand. Along with this, businesses will come under pressure on costs and we may see lower profits going forward.
Experts believe that if there is a situation like recession in developed countries, then there will be a negative impact on the growth of developing countries. Madan Sabnavis, chief economist at Bank of Baroda, says it has two meanings for India. The first interest rate hikes will make the US market more attractive. Due to which the flow of dollars from emerging markets like India will head towards America. The depreciation of the rupee against other dollars will increase.
What else is possible
Currently, selling is seen with every bounce in the market. This indicates a downward trend of investors towards the stock market at the moment. Market experts say that it is very difficult to tell that the bottom of the market has been formed. But it can be said that it will take time to form a long-term bottom.
Ajit Mishra of Religare Broking Says first support is visible for Nifty at 15,400-15,450. While there is big support at 14,800 and 15,000. We can see Nifty consolidating near these levels ahead of any upside from this zone.
What is the strategy of investors now
Experts advise investors not to panic just yet. Be careful and choose quality stocks. At present, many good stocks are available at cheap prices. Deepak Jasani of HDFC Securities It says retail investors should review and rebalance their asset allocation and stock portfolios. If there is a bounce in the middle, take advantage of it with the prospect of portfolio rebalancing. With the money from this profit, make new purchases in the next few months when the fall stops.
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Experts say investors should maintain their investment in quality stocks. There is no doubt that there are many short-term challenges. But from a 3-5 year perspective, India’s growth prospects look quite good. Other than that, rolling 12-month valuations look pretty good. Investors should keep an eye out for companies that have low debt levels and strong pricing power. It would be advisable to avoid panic selling or bottom fishing in the current market conditions. Investing through SIP is also a good option.
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