Markets kept us on toes this week – Yadnya’s view

3 min read
There was a lot of weakness in the Stock market last week. There was close to 10% value fall in just one week of all major indices. There was huge selling by FII (Foreign Institutional Investors) and large buying by DIIs (Domestic Institutional Investors like Mutual Funds, Insurance Companies, LIC, EPFO etc.). This was not just the trend in India but all global stock markets saw similar trends - S&P 500 fall by -8.79%, Nasdaq by -8.17% & FTSE 100 by - 17%.
There is bull market, there is bear market and then there are times when it seems like as if the earth has been hit by a meteor just like the Jurassic age! The current coronavirus scare is definitely making the capital markets shiver in “fear”, a fear which is mindlessly propagated by media, news channels and the biggest culprit social media. There was a lot of weakness in the Stock market last week. There was close to 10% value fall in just one week of all major indices. There was huge selling by FII (Foreign Institutional Investors) and large buying by DIIs (Domestic Institutional Investors like Mutual Funds, Insurance Companies, LIC, EPFO etc.). This was not just the trend in India but all global stock markets saw similar trends –  S&P 500 fall by -8.79%, Nasdaq by -8.17% & FTSE 100 by – 17%.

So we all know the reasons
1. Pandemic Coronavirus spread globally. 120+ countries, 5500+ deaths & 1.5+ Lakhs confirmed cases. Many countries have declared national emergencies and have locked down the country. This spread has clearly impacted the trade and many industries are badly hit like – Airline, Hospitality, Holiday, Travel & Entertainment. 
2. Decrease in Crude Oil prices to near 35$/barrel
3. Yes Bank Fallout which is keeping Indian banking industry on edge. We did multiple videos and live sessions in the last week on these topics, which you should surely watch and understand what you should do in such weak & volatile markets. To help you make decisions – Buy more or Stay put or Start selling before it gets worse?

All was not gloom & doom last week, there are some good news too which were missed by many –

1. CPI decreased as compared to last 2 months to 6.58%. It is still on higher side but now with this corona scare, it will come down much more than expected

2. IIP was at 5 months high of 2%, which was a positive sign for Manufacturing sector and signalled that our economy downturn might have seen the bottom but then Coronavirus can change things a lot

3. Due to lowering of Crude oil, our CAD (Current Account Deficit) has come down to just 0.2% of GDP, which saves us lot of foreign exchange

These are the times that truly help you figure out your risk appetite and risk profile! This is the time to observe your reactions carefully and decipher! These are the times that test an investor’s patience and risk tolerance. These are the times that create future wealth accumulators. These are the times that test how rationally we think. These are the times that help you clearly segregate how “fear” and “greed” drive capital markets and how investor behavior is affected from herd mentality and panic states! Stay tuned to our updatespostsvideos and live sessions to help you make the right decisions. Login to InvestYadnya.in today!

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