Stocks In Danger Of Entering Bear Region
By Ashwini Agarwal
First publised on 2022-06-17 08:27:04
About the Author
Global cues
once again caused the Indian stock market to go weak in the knees and the
result was huge losses for the investors. Consequent to the high inflation in
the US and hiking of interest rates by the US Fed and the Bank Of England,
markets all over the world tumbled on Thursday and the Indian markets followed
the lead. Sensex went down by 1046 points to 51496 and Nifty by 331 points to
15360, resulting in a wipe out of Rs5.6 lakh crore investor wealth.
The trading
session on Thursday was volatile as the Sensex was down 1700 points from the
dayâs high before it recovered to close at just 1046 points lower than its
closing point on Wednesday. But that was enough to take it to its lowest level
in 52-weeks. The market is not getting any support from the FIIs which have
pulled out nearly Rs 2 lakh crore from Indian markets in 2022 as the US Fed
indicated that it would raise rates going forward.
The US
markets â S&P 500 and Nasdaq â are already in the bear zone (meaning they
are 20% lower than the all-time high). The Indian indices are also in the
danger of entering the bear territory as they have slid 17% from the all-time intraday
high of 62245 achieved in October 2021. The current meltdown has not even
spared the new-age crypto assets as investors have become jittery after stagflation
fears in the US.
But experts
have advised small investors not to panic and wait as the markets will recover
by the end of this year. They have also advised small investors not to make
more investments as the bottom has not been reached yet. This is the time to be
cautious and not to incur losses by being rash.
