The sale continues on the market.
In recent days there has been a huge drop in the stock market, due to which investors have suffered huge losses. According to a report, more than Rs 26 lakh crore has been lost so far. If we look at the October figures, so far this month the BSE Sensex has declined by 5 per cent. The condition of NSE Nifty is also similar. In such a situation, the market crash indicates many things, but on the other hand it has also become an enigma for investors. Amid all this, the report by brokerage firm CLSA has further raised concerns.
What does the report say?
According to Lawrence Balanco, chief chartist at brokerage firm CLSA, the Nifty 50 index may fall another 1,000 points from the current level. According to him, Nifty may fall to the 23,300 level over 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 fall was also recorded in the Bank Nifty, Small Cap and Midcap indices. Of the top 30 stocks on BSE, 22 fell, while shares of NTPC and Mahindra fell over 3%.
Why is the market plummeting?
The main reason behind the stock market decline is the decline in companies’ quarterly profits, which have been below expectations. Foreign investors have withdrawn a huge amount of money from the Indian market, which reached Rs 88,244 crore in the month of October. In addition to this, the US elections and pressure on the global market have also had a negative impact on the market. Furthermore, the $142 billion aid package given by the Chinese government for its economy turned out to be a loss-making business for the Indian market, because due to this foreign investors withdraw money from India and invest it in China.
Experts say investors should avoid buying at this time and wait until the market direction stabilizes. Unless the stock market closes at its highest level for two consecutive days, it may be too early to invest.
