Risky investment of Rs 35,450 crore by retail customers

AHMEDABAD: The long-awaited sell-off or correction has taken place in the Indian stock market. On Friday, the Sensex was down 17.6 points at 7,109.15 and the Nifty was down 203.50 points at 12,09.8. With today's decline, the biggest weekly decline since January has been in the Indian stock market, with both major stocks closing at three-month lows.

However, even in the face of this decline, retail customers and domestic funds are buying and foreign institutions are selling out of India. Is. Mutual funds have been bought for Rs 4,606.5 crore against this sale. Most surprisingly, retail customers are also buying and their purchases have intensified over the past month.

Retail customers made purchases worth Rs 2,50.10 crore during the period. Buy at every drop, this purchase is taking place amidst the advice that there is no room for correction in the market now. The way in which the market has seen a decline may lead to panic among retail consumers, which could have a major impact on the market sentiment.

The Nifty and the Sensex have fallen as much as 4.5 per cent since the October 16 peak. The Nifty Bank Index is down 2.6 per cent, the Nifty Midcap is down 3 per cent and the Smallcap is down 2.15 per cent. However, in the last six months, the Nifty Metals Index, which has been at the forefront of the rally, has fallen by 12.5 per cent and the real estate index by 10 per cent. This shows that in an environment of fear, people have chosen to sell first and will look into the reasons for the decline and when the market will stop declining.

Global markets saw a shift from risk to safety on Friday. Corona virus is disappearing and the global economy is recovering, freight and passenger traffic is easing so markets were growing. The only risk was that inflation would rise against the market.

But instead of spreading faster in South Africa and Hong Kong, new corona viruses have been found that do not respond to vaccines or even therapeutic drugs. The report also saw sell-offs in risky assets such as stocks, crude oil and metals. On the other hand, buying gold, the US Treasury and the Japanese yen, which are considered safe havens.

The Indian stock market, however, has been showing signs of selling over the past two weeks. Foreign stocks continue to sell in anticipation of rising interest rates in the US and the Indian stock market is declining due to its weight.

Between October 16 and November 9, the Sensex fell by 316 points and the Nifty by 19 points. There are nine companies that have fallen more than the Nifty's 7.5 per cent decline.

The biggest declines during the period were in IndusInd Bank (7.8 per cent), Hindalco (21.5 per cent), Tata Steel (12.5 per cent) and Axis Bank (19.5 per cent). Bharti Airtel and Cipla are leading the growth with 4.5 per cent and 2.7 per cent, respectively. Reliance Industries, Infosys, State Bank of India and ICICI Bank, which are heaviest in the index, also declined.

The decline has begun, yet sales will increase

According to experts who have been trading and investing in the stock market for two decades, Friday's decline is really the beginning of a correction. There is a class in the market right now advising to buy new but they have not seen a correction. The current market is signaling that further declines will continue in the coming days and a rebound will push up sales. The Nifty may still fall in the coming days and investors need to be cautious.

Decreased statistics from all time highs

* The Sensex fell 2.4 per cent, or 216 points

* Nifty down 4.5 percent or 12 points

* Shares of 9 Nifty companies fell

* Erosion of Rs 15,10,8 crore in investors' assets

* Erosion of Rs 2,8,31 crore in a single day on Friday

* 2,500 crore sales of foreign institutions

* Purchase of local funds for Rs. 4,502 crore

* Purchases of retail customers worth Rs 2,50 crore