For a few days now, a sense of fear has been reigning in the stock market as investors are facing huge losses due to the market crash. Yesterday, that is, on Tuesday itself, Sensex had fallen by 930 points, while Nifty had fallen by more than 300 points. In such a situation, there was a loss of approximately Rs 9 lakh crore in investors’ valuation. There was also a drop in the stock market on Monday. Investors have suffered a loss of Rs 13 lakh crore over the last two days. Now a new estimate has come out about Nifty.
Leading brokerage firm CLSA has said that the Nifty 50 index may fall further by around 1,000 points from the current level. This estimate has been given by Lawrence Balanco, principal chartist at leading brokerage firm CLSA. While Nifty is already trading about 7% below its all-time high of 26,277. In a CNBC-TV18 report, Balanco said that Nifty could fall to the 23,300 level in the next 20 trading sessions.
On Wednesday, Nifty fell 37 points to close at 24,435, while Sensex fell 138 points to close at 80,081. A decline was also seen in small and midcap indices including Bank Nifty. Of the top 30 stocks on BSE, 8 stocks rose and the remaining 22 stocks fell. Shares of NTPC and Mahindra fell the most, down more than 3 per cent.
Why is the stock market falling?
- Experts estimate that the main reason is the drop in company profits. The quarterly results of many companies have not been as good as expected, which is why profits are being recorded in the stock market.
- This month, foreign investors have withdrawn a record amount from the Indian market. This figure has reached around Rs 1 lakh crore. Till October 21, foreign investors have withdrawn Rs 88,244 crore.
- There is constant pressure in the global market. The global market is under pressure due to the US elections and a drop is seen every day.
What should be done now?
Many experts believe that, in view of this decline, it would not be correct to buy now. Investors should wait until the market takes its direction. Especially until the stock market closes at its daily high for at least two days, it would be too early to buy.
(Note: Before investing in any stock, definitely seek the help of a financial advisor.)
