Thu. Mar 28th, 2024
BSE Stock MarketSource: expresscomputer.in

Last week the stock market remained volatile, filled with uncertainty. On 12th April, news broke out that Investors’ wealth, fell heavily over Rs 8.77 lakh crore as the country is witnessing the surging cases of Covid-19 that has roiled the equity market.

As reported by PTI, the 30-share BSE benchmark index plunged 1,707.94 points or 3.44 per cent to close at 47,883.38. During the day, it slumped 1,897.88 points to 47,693.44.
If we look at the losses booked at the equity market, the market capitalization of BSE-listed companies sunk by Rs 8,77,435.5 crore to Rs 2,00,85,806.37 crore.

IndusInd Bank remained one of the biggest losers among the Sensex companies, declining 8.60 per cent, followed by Bajaj Finance, SBI, ONGC, Titan, M&M and Axis Bank.

Binod Modi, Head Strategy at Reliance Securities, in a statement to PTI, said domestic equities reminded the sharp selling happened in March 2020 as the Covid-19 cases surged in the country and the possibility of the lockdown dented investors’ sentiments.

‘Markets started the week on a feeble note and lost over three and a half per cent. The benchmark indices continued to plunge southwards due to rising COVID-19 cases, and the possibility of lockdown in various parts of the country. Selling pressure widened as the day progressed,’ Ajit Mishra, VP – Research at Religare Broking Ltd told PTI.

All BSE sectoral indices marked losses by the end of the day. The realty index declined 7.70 per cent, followed by industrials, metal, auto, power, and finance. “In the broader market, the BSE midcap and small-cap indices tumbled up to 5.32 per cent,” marked PTI.
Shares of 2,477 companies closed with a red candlestick while 510 advanced and 174 remained unchanged.

In India, consecutively for the last four days, Covid cases crossed the threshold of 2 lakh cases per day. So, with rising cases So as the cases mount, should investors fear another crash in the market?

The stock market is primarily driven by sentiments. Many investors know to book profit but fail to set a stop loss. They must train themselves with the technical tools that can help in understanding the trend the market is following days or week. One to seek the stop loss, the losses they can afford to make, instead of waiting for the change in the trend.

In a statement to Business Standard, Palka Chopra, Senior Vice President, Master Capital Services shed some light on it and said, “ Global equity markets, including Indian markets, have rallied a lot since the last market crash. The Covid-19 pandemic is a good enough reason to witness a correction. Equity markets may correct in the near term as there has been an increase in volatility. The probability that the markets could go into a phase of correction is greater than going significantly higher from the levels which we have seen sometime back. The volatility is expected to continue for some time.”

Experts suggest investors use any correction in the stock market for investment. Though they feel it is idle time to invest in long-term investments, refrain from setting up short term goals.

Chopra added to what she said earlier, “Use the stock market correction due to coronavirus fear. Equity investors can invest in corrections. Therefore, if you see any kind of correction in the market, that would be a buying opportunity. Invest in the sectors which have strong potential such as IT, metal, pharma. Banking remains weak which may reverse its trend in the coming days.”

Despite the market shaking the sentiments of the investors, it is essential to keep an eye on trends and take advantage of the time when the bulls enter strong.

Indeed the market is going to experience uncertainty. With partial lockdowns, increasing containment zones, and a shortage in inoculation accessibility, the stock market will be witnessing bears in their full force.

“Going ahead, Indian markets are likely to be highly volatile and would be an interplay of a resurgence in COVID-19 cases and the pace of vaccination. As the pace of vaccination picks up, we expect the narrative to gradually shift from Covid-19 and restrictions back to growth/cyclical recovery and rebound corporate earnings,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd in a statement to Financial Express.

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.