The fall in the stock markets has scared investors. Today proved to be Black Monday for the market. The Sensex fell 1747 points, or 3.00 per cent, to 56,405. Nifty has also slipped 560 points to 16,814. The special thing is that all-round selling pressure is visible in the markets. There is a big fall in all the big and small stocks. The Sensex has lost 4,818 points in just one month. How long will this decline continue?
Sensex slips below 1700 twice in two months
The fall in the market has come at a time when LIC is going to present the IPO. In such a situation, the impact of the fall can be on this mega issue. Experts say that the stock markets around the world are under pressure. The fall in the Indian market is high, due to the selling of foreign funds. Over the past few weeks, foreign funds have been continuously selling in the Indian markets. Because of this Nifty has gone below 17,000. Earlier on December 17, Nifty went below 17,000. The Nifty falling below 17,000 twice in about two months indicates that there is no strength in the market.
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Global factors put increased pressure on the market
Experts say that global factors have a big hand in the fall. Mainly three things are increasing the pressure on the market. The first in this is the increasing tension between Russia and Ukraine. Talks between the US and Russia have been fruitless. Even Germany’s efforts have not been able to reduce the tension. On the other hand, the interest rate in America is going to increase more than expected. Earlier it was being said that interest rates can be increased there at least four times this year. Now it is estimated to increase to 7 times. It will be negative for emerging markets. Third, the price of crude oil has reached $ 96 per barrel. This can do great harm to the Indian economy.
Oil marketing companies are in bad condition
Shares of oil marketing companies fell sharply on Monday. HPCL’s stock fell 4 per cent. BPCL’s stock fell more than 2 per cent. Shares of Indian Oil Corporation fell 4.55 per cent. Actually, for the last 75 days, these companies have not increased the prices of petrol and diesel. On the other hand, crude has reached $ 96 per barrel. The last time oil marketing companies raised petrol and diesel prices was when crude was priced at $80 a barrel. In this way the price has reached 80 to 96 dollars, while the oil companies are selling at the old price. This will directly put pressure on their margins. To avoid this, they will have to make rapid post-election growth in oil companies.
What you should do?
The question is, what kind of strategy should retail investors adopt now? Experts say that they do not need to be afraid. The market may show volatility for at least two months. Therefore, one-time large purchases should be avoided. Don’t panic selling. This may cause damage. If you can wait, it would be fine to wait a month or two. If you have extra money, you can buy a little bit in stocks of strong companies every fall.
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