Thursday, June, 20,2024

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DESPITE TOUCHING THE PEAK, NEED TO BE CAUTIOUS

Even before the Lok Sabha election results, BSE and NSE indices have reached new records, but despite this, traders are advising investors to be cautious about new investments. The reason for this advice is that the market is assuming that the government will once again take oath under the leadership of Narendra Modi, but this time if the slogan of crossing 400 is not fulfilled then the important decisions that the government has to take will be affected, which can also become a reason for the fall in the market. The clouds of doubt regarding the monsoon, which is considered the pivot of the Indian economy, have now been cleared. The Indian Meteorological Department estimates that this time the monsoon rains in the country will be normal. The intense heat in North India in the month of May has also confirmed these estimates in a way. The only factor affecting the stock market now is the election results to be declared on June 4, in which how many seats the NDA gets and what is the position of BJP alone in it, that will affect the movement of the stock market. Experts are still firm on the fact that whatever be the election result, whichever government is formed, it will definitely make efforts through positive policies to give impetus to the country’s economy, which will only be auspicious for the Indian stock market.

After the trading session ended on Friday, there was an increase of 1493.36 points (2.02%) in the BSE index last week and the BSE index closed at 75410.39 points, while the NSE Nifty index improved by 491.00 points (2.19%) and it closed at 22957.10 points. Last week, the special thing was that the BSE index achieved the success of reaching a record point of 75636.50 points and a Nifty index of 23026.40, but due to profit booking, the market declined from its highest level. Midcap and smallcap indices were also not untouched by the ongoing bullishness in the market, but it is a different matter that the scope of their rise was weaker than that of the basic index. A major reason for the rise in the stock market is the surplus of Rs 2.11 lakh crore given to the government by the Reserve Bank of India. Talking about the bullion market, this week there was a good improvement in the bullion market on the strength of the demand coming out in the international markets and there was a significant rise in the prices of gold and silver, but on Wednesday itself, the euphoria of the rise in gold and silver subsided and the period of decline in metals started which continued till Saturday. Comparatively, while gold prices fell by Rs 2400 per 10 grams this week, silver prices declined by Rs 250 per kg and the price of 24 carat gold in Jaipur decreased from Rs 76,000 per ten grams to Rs 73,600 per ten grams and silver fell from Rs 92,100 per kg to Rs 91,850 per kg. Traders say that the reason for weakness in gold prices is the contraction of the futures market, while profit booking is going on in silver. Traders believe that since there is an improving trend in the metal, there is a possibility of further improvement in the prices of gold and silver soon, but the subscription in the market is very weak.

Regarding the market trend this week, traders say that there will be ups and downs in the market and in such a situation investors need to remain cautious. This week, the monthly cut of the futures market is to take place, which is expected to have an impact on both the index and the stock market. Traders still believe that due to the ongoing fluctuations in the market, investors will get many opportunities to make new investments till June 4.

(This is the personal opinion of the author. The author, his family members and acquaintances may have investments in the companies mentioned in the article.)

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