The period of turmoil may continue amid global tensions

The decline in the Indian stock market continued last week. On the first day of last week, Monday, the fall of 2222.55 points in the BSE index and 662.10 points in the Nifty index shook the confidence of Indian investors, while the rise on the last day of last week also did not contribute much in reviving their confidence. Investors may still be confused about why the unemployment figures in America, the devaluation of the Japanese currency Yen and the increasing tension between Israel and Iran affected the Indian markets while the latest tension is the change of power in Bangladesh and its effect on Indian companies, in such a situation it can be said that from the technical point of view, even if the Indian markets are considered to be in a recovery trend due to Friday’s rise, but the period of turmoil may continue in the Indian markets. The reason for this is the historic rise in the BSE and NSE indices, due to which profit booking is natural. It can also be assumed in the coming times that no matter how good the first quarter results of Indian companies are, the market is bound to see ups and downs due to the activities of the international markets. In such a situation, investors should focus on their portfolios instead of the index and if the market falls, they should increase their investment in the company that is said to be fundamentally strong. It can be said with satisfaction about the Indian markets that despite the flood of IPOs of huge amounts and the ever-increasing SME IPOs in the market, and the selling by foreign institutional investors, there is no shortage of cash flow in the market through Systematic Investment Plans i.e. SIPs, due to which the market will definitely pick up pace, even if after some time.

Last week, which ended on Friday, the BSE index fell by 1276.04 points (1.58%) and closed at 79705.91 points, while the NSE Nifty index fell by 350.20 points (1.42%) and closed at 24367.50 points. With the fall in the market, the midcap and smallcap index also joined in and there was a downward trend in them too. The special thing is that smallcap is seeing a greater downward trend than midcap, which is enough to make the investors’ condition weak. Last week also, while foreign institutional investors-FIIs sold shares worth Rs 19139.76 crore, on the contrary, domestic institutional investors-DIIs responded to the selling of FIIs and DIIs bought shares worth Rs 20871.10 crore, which is a sign of DII’s confidence in Indian shares. Talking about the bullion market, this week the effect of customer demand and improvement in international markets was seen. There was no change in the price of 24 carat gold in the bullion market of Jaipur and this week the price remained stable at Rs 71,700 per ten grams as on last Saturday. While the price of silver fell by Rs 2200 per kg and it came down from Rs 84700 per kg last week to Rs 82500 per kg. Traders are expecting stability in the prices of gold and silver this week, but they also say that if the tension between Israel and Iran increases and clashes also start between them, then the equations of rise in prices will be formed in the market.

Regarding the market trend this week, traders are expressing the possibility of improvement on a technical basis. There is hope of a rise in the market, but a clear prediction cannot be made about when it will come. In the current situation, some traders are considering the investment made in companies like State Bank of India, Ola, DCW, IDBI Bank, Adani Volmers, BEL, Indo Amines, Pay-TM, Seagull, Jyoti Structure etc. as safe, but investors should also keep in mind that if there is a decline, even the shares considered strong are not untouched by it. Investors investing through IPO will get an opportunity to apply in the IPO of 5 companies entering the market through Saraswati Saree Depot and MSME Platform at a price of Rs 152- 160 in the main board this week. Those investing in new IPOs definitely need to be cautious about the huge premium being demanded by the companies. On the other hand, in the new IPO applications coming to SEBI, this week five companies Hero Fincorp, Rubicon Research, apart from Afcon Infrastructure and Quadrant Future Tech Limited have presented their Draft Herring Prospectus-DRHP and Revised DRHP.

These are the personal views of the author