The stock market has been declining for the last several weeks. In such a situation, investors are scared that this decline may not last longer. In fact, foreign investors are rapidly reducing their stake in the Indian market, due to which a decline is also being seen in the market. Talking about the month of November alone, foreign investors have withdrawn Rs 22,420 crore from the Indian equity market. Whereas in October, foreign investors had withdrawn a total of Rs 94,017 crore from Indian shares.
What are experts saying
Speaking to Moneycontrol, Sudeep Shah of SBI Securities said that BSE Sensex is currently trading around the 200-day EMA level. At the same time, momentum indicators and oscillators are also indicating strong downward momentum in Sensex. In such a situation, if the Sensex goes below 77,400-77,300 (200 Day EMA), then a huge fall can be seen in the stock market. Regarding Bank Nifty, Sudeep Shah said that this index has given a 5 week consolidation breakdown and it has made a big bearish candle on the breakdown week. Due to this, downward pressure may increase in the short term.
There may be improvement in the long term
According to the report of Economic Times, Samco Ventures CEO Jimeet Modi says that there is no need to panic about this decline. He believes that market correction is a normal process, which is better for the market in the long term. Jimeet says that such declines are seen frequently in the market and they are mostly a part of a strong growth cycle. If you look at the data of the last five years, you will find that such corrections have been happening in the market and after this the market has performed well in the long term.
Why is there such a decline in the market
There are many reasons for the decline in the Indian market. Apart from selling by foreign institutional investors (FIIs), rising tensions in the Middle East and weak quarterly earnings reports of Indian companies have also added to the negative sentiment in the Indian market. This is the reason why investors have increased concern about the decline in the market.
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