Bears attacked the market, especially in the last hour of trading. HDFC twins and Infosys remained the top laggards for the second consecutive day, dragging the market strongly on Tuesday. Indian and global markets were hit hard today after Ukraine said a long-awaited offensive attack has begun in the Donbas region of eastern Ukraine, with intensified attacks in the north and east of the country.
The benchmark BSE Sensex fell 1,183 points from Tuesday’s high, dropping 703 points at 56,463 levels. The index had hit an intra-day low of 56,009. The NSE Nifty50, on the other hand, broke below the 17,000 level and ended at 16,959, down 215 points. Both indices fell 1.2 percent each.
HDFC twins and Infosys remained the top laggards for the second consecutive day, dragging the market strongly. HDFC fell 6.1 percent to close at Rs 2,125 on BSE. HDFC Bank was down for the ninth session in a row. It fell 3.73 percent to Rs 1,343.30. Meanwhile, Infosys fell 3.55 percent to Rs 1,563.95 and TCS had fallen 1.53 percent to Rs 3,474.30. These four stocks contributed nearly 650 points to today’s Sensex decline.
Is it the right time to buy the dip?
The long-term structure of the Indian market is bullish, but we are going through many hurdles in the short term, such as geopolitical tensions, higher commodity prices and rising interest rates, market experts say.
Santosh Meena, head of research at Swastika Investmart Ltd., said: “Inflation is the biggest challenge and if growth goes off track it could become the biggest damper of sentiment. Some economists point to global stagflation, a situation of low growth and high inflation , otherwise the Indian market will undergo a transformation to outperform.
“As I said, we will be bullish in the Indian market for the next three to five years, despite some global risks, so any correction should be viewed as a buying opportunity. market. We are very optimistic about the economic sectors such as Infrastructure, Capital Goods, Real Estate and Banking,” said Meena.
Vikram Kasat, chief adviser and western region at Prabhudas Lilladher, said: “Of course yes. No one knows how much the market can fall or rise at any given time. So if we get a chance, even with a little dip, we should buy rather than wait for the market to drop more. What if the market stops falling?”
Helpful Technical Perspectives
Vikas Jain, senior research analyst at Reliance Securities, said: “NIFTY50 has witnessed 50 percent corrective action from the entire rise from 16,000 to 18,000 levels, the major index heavyweights have lowered the indices over the past 8 trading sessions. NIFTY50 is trading near the 200 day moving average and we think this is a good opportunity as it will be more stock specific with regard to full year results for FY22 Concerns about higher inflation and higher crude oil prices may persist in the coming weeks, leading markets after a 5 percent decline from current levels continues to consolidate 17,000-17,200 is the broader monthly average held for the past few months, on the higher end 17,800-18,000 would act as a strong resistance.
What should investors pay attention to when buying?
Rahul Shah-Co-Head of Research at Equitymaster, said: “I see Indian companies creating new profit records in 8-10 years. And so fear of the best quality companies doesn’t make sense. These are companies run by great management teams with a solid track record of growth and profitability, even if they fall in the current volatile market, they will eventually recover and create new highs.”
“However, investors should be wary of stocks that are weak competitive and highly leveraged. These are typically stocks that have had many loss-making years in the past and have debt that far exceeds equity on their balance sheet. The biggest risk to investing is buying such poor quality stocks during a bull market. Such stocks, if they fall, may never recover or remain stable for years. Therefore, the idea should be to get rid of such stocks and stay in good quality companies,” Shah.
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