Stocks: Carnage on Monday
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
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By Linus Garg
First publised on 2022-06-14 03:02:02
About the Author
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
View all posts by this Author
After a
slide of 1069 points on Friday, the Sensex went down by 1456 points on Monday. The two-session carnage has wiped out more than Rs 9 lakh crore investor
wealth. Such was the across-the-board sell-off that among the major shares,
only Nestle India was in the green and all other shares tumbled by 2-4%. The
broader Nifty slid by 427 points to 15774. The carnage was witnessed across
sectors with banking, IT and metals leading the slide.
Experts
said that with FIIs taking funds out of India as there is a chance that the US
Fed will go for a good rate hike and squeeze out money from the system due to
the record inflation in US, the Indian markets will mirror what is happening in
bourses worldwide. After fears of stagflation being stoked by some economists,
the sentiment has soured and investors are looking for safer investment
instruments. With overnight sell-off in US markets, the outlook for Indian
markets remains negative on Tuesday too.
But the
Indian economy, despite elevated inflation, is showing signs of growth although
the pace seems to have slackened. As per recent numbers, it is the fastest
growing major economy in the world and although consumer demand has still not
picked up, the outlook remains positive. But inflation, supply chain
disruptions and high commodity and crude prices can play spoilers and that is
why the confidence in the stock market is taking a beating.
Yet, if one
has a long term outlook, there are many stocks that are now available at a
bargain. But one will have to do proper research and invest with care. The bottom
has not been reached yet and investors should wait. Remember, this is the time
when one will be flooded with text messages from unverified sources asking one
to buy this or that share at a bargain with a promise of astronomical rise in a
short time. Steer clear of falling into such traps. Invest wisely.
