Dalal Street Corner: Investors lose over Rs 5 trillion, indicators down more than 2%

The sharp correction left more than 5 trillion investors impoverished on Thursday as benchmarks ended with a deeper cut of more than 2% amid weak global signals and high volatility. According to exchange data, the market capitalization of BSE-listed companies fell from Rs 2,46,31,990.38 lakh crore on Wednesday to Rs 2,41,03,944.87 crore on Thursday.

As for the stock, 330 stocks touched 52-week lows and 531 stocks touched lower circuits. Of the 3,447 stocks traded on the BSE on Thursday, 2,614 declined, 86 remained unchanged, while only 747 stocks advanced.

In the broader market, the Nifty50 ended at about 15,800, with midcap and small caps down 2.3% and 1.8%, respectively. Among sectoral indices, Nifty PSU Bank and Metal declined 5.3% and 3.7%, respectively, as all sectors slipped to red.

Here is what experts say about today’s correction in the market and the expected trend ahead.

Vinod Nair, Head of Research, Geojit Financial Services.

Yesterday’s expected release of US CPI data suggests that inflationary pressures will continue in the near term. However, the idea is that it has reached the top and will gradually decline with the ongoing fall in crude and other commodity prices and the recession in the economy.

The Fed has surprised the market by limiting liquidity, limiting further disasters in the future. We expect the market to stabilize as FII sales could reduce factoring inflation and Fed policy.

Vinit Bagri, Managing Partner – TrustPlutus Wealth

Overseas markets lost their initial profits overnight due to continued sales in technology, leading to a wide range of sales shutdowns. The inflation print was higher than expected, prompting further aggressive rate hikes and calls for weaker global growth in CY23. And with the dollar index strengthening at 104, FIIs continue to sell EM space.

Also, DII shopping is acting as a much needed shock absorber in our market. However, preliminary indicators indicate that retail investors have also begun to take money from the table.

Although macro indicators are weakening, we are also seeing some green shoots, especially recent cooling in products such as aluminum, copper, zinc, steel and iron ore.

However, it is a welcome relief because India is not an export-driven market. While the expected global GDP growth rate for CY 22/23 is slowing, India is probably the only major economy that is expected to grow at an average of 7% over the next two years.

Thus, we believe that once the selling pressure subsides and the price / inflation starts to cool down, a strong bounce of the Indian market should be seen again.

S. Ranganathan, Head of Research, LKP Securities.

Benchmark indices fell 2.5% in afternoon trade on weak global cues as investors booked gains as oil, war, currency, inflation and the inability to fix puzzles around interest rates.

The expectation of higher CPIs in April with the marginal pressure seen in the fourth quarter earnings is further strengthening the selling pressure on equities which was evident in the annual low number of stocks today as the Sensex broke 53K with all sectoral indices ending deep red.

With the safe-haven flow pushing the dollar index to a 20-year high, investors now seem to be pinning their hopes on resolving the conflict soon.

Santosh Meena, Head of Research, Swastika Investmart Limited.

The current market is falling relentlessly and today has crossed the 16000 mark. This market is not for the faint-hearted as further declines are possible and there will be no respite on the short-term volatility front.

Investors, especially those who have entered the postcovid bull market, need to lower their expectations and work hard to make a reasonable profit.

Gone are the days when a stock rose 10% a week or 30% a month or 5 times a year !! However, the current Deep Stock offers a good opportunity to add and India is currently in a better position in terms of economic strength than its counterparts in the medium to long term.

(Disclaimer: The opinions / suggestions / suggestions published here in this article are by investment experts only. Zee Business advises its readers to consult their investment advisors before making any financial decisions.)