A sense of fear has permeated the stock market in recent days as stocks fell and investors faced huge losses. Yesterday, on Tuesday, the Sensex fell by 930 points, while the Nifty fell by more than 300 points. In this case, investors lost around Rs 900 crore in valuation. Stocks also fell on Monday. Investors lost Rs 1,300 crore in the past two days. Now, new estimates for Nifty are out.
Leading brokerage CLSA said the Nifty 50 index may fall further by about 1,000 points from current levels. This estimate was given by Lawrence Balanco, a top chart analyst at leading brokerage CLSA. The Nifty share price has fallen about 7% from its all-time high of 26,277. Balanco said in a CNBC-TV18 report that the Nifty may fall to the 23,300 level in the next 20 trading days.
On Wednesday, the Nifty fell 37 points to close at 24,435 points and the Sensex fell 138 points to close at 80,081 points. Small-cap and mid-cap indices including Bank Nifty also fell. Among the top 30 stocks on BSE, 8 rose while the remaining 22 fell. Shares of NTPC and Mahindra fell the most, down more than 3%.
Why did the stock market fall?
- Experts estimate that the biggest reason is the decline in corporate profits. Quarterly results from many companies fell short of expectations, leading to earnings bookings in the stock market.
- Foreign investors have withdrawn their capital from Indian markets at a record high this month. This figure has reached about Rs 100 crore. As of October 21, foreign investors have withdrawn 88,244 billion rupees.
- Global markets continue to be under pressure. Global markets are under pressure and falling every day due to the US election.
What should I do now?
Many experts believe that given this decline, it is not a good time to buy now. Investors should wait for the market to move in its direction. Especially if the stock market hasn’t closed at its daily high for at least two days, it’s too early to buy.
(Note – Always seek help from a financial advisor before investing in any stock.)
