Due to the ongoing war between Russia and Ukraine and the fear prevailing in the market, capital of more than Rs. Bears were seen strengthening their hold on Dalal Street in today’s trade. Since the beginning of February, around Rs 29 lakh crore has been lost to investors.
Foreign Institutional Investors (FIIs) have sold around Rs 18,000 crore since the beginning of March 2022. In this sell-off environment, Mihir Vora of Max Life Insurance advises long-term investors that “sometimes doing nothing is the best strategy in the market”.
In an interview given to CNBC TV-18, he said that the situation is changing very fast at this time and it is difficult for you to predict which side the market will take next moment. As the market condition is quite gloomy and as of now no good news is coming from anywhere. In such a situation, we also need to keep in mind that the stock prices have also shown a very rapid movement.
Nifty is looking down 10-12 per cent and in the last 3-4 months the market has seen a very wide decline. However, this decline is not visible as much from indices like Sensex-Nifty.
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Comparing the current market situation with March 2020, Mihir Vora said that this year the market situation looks different. In March 2020, it was clear that the IT and Pharma indices would outperform due to the increasing investment in technology and the wave of COVID-19, but at this time the market is dominated by supply constraints and fear of inflation. Due to which commodity related stocks are seeing a rise. Once the conditions improve, India’s economy will be seen doing much better in the domestic sector. Keeping this in mind the market strategy now should be different as compared to March 2020. However, if you have extra money to invest at this time, then you should gradually start buying good stocks.
Looking at the market’s move today, the Sensex closed at 52,842.75 with a fall of 1491.06 points, or 2.74 per cent, at the end of trading. On the other hand, Nifty closed at 15,863.15, down 382.20 points or 2.35 percent.
In today’s trade, Nifty Midcap 100 and Nifty Smallcap 100 were also seen stepping into the bear market zone. Today both these indices opened with a fall amid weak global cues. Explain that if an index breaks 20 percent or more from its recent high, then it is considered that that index has entered the bear market. Same is the case with Nifty Midcap and Smallcap. Because both these indices have broken more than 20 per cent from their recent highs.
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