The outbreak of the Corona epidemic spread the world over, leading to a worldwide lockdown. On 23 March 2020, PM Modi declared a 21-day lockdown in India. Due to which there was a huge selling in the market.
The lockdown gradually began to open in the following months. Efforts to increase liquidity by the government and interest rate cuts across the world once again showed a boost in the equity market. The market has come a long way since 23 March. During this period, Cessanx has run about 86 per cent and Nifty has run around 88 per cent.
Gaurav Garg of CapitalVia Global Research says that it is expected that in FY 2021-22, the market will look upwards. The reason for this is that since October 2020, all the important sectors related to the economy like banks, NBFCs, capital goods, metal & mining and real estate have been consistently doing well.
According to Ace Equity since March 23, 2020, there have been 250 stocks that have proved to be multibaggers. In this, Tanla Platforms has given more than 2000 per cent returns. On the other hand, Adani Green Energy, Adani Total Gas, Adani Enterprises, Vaibhav Global, Aarti Drugs, Dixon Technologies (India) and Hindustan Copper have seen a jump of 500 to 800 per cent.
The metal, auto and IT sectors saw the highest growth in this period, while FMCG, pharma and PSU banks performed poorly.
How will the market move ahead, what should be the investment strategy
Right now the market is going through a correction phase. Market heavyweights say that we may see strong fluctuations in the short term. However, the long-term outlook of the market remains strong.
The market is expected to continue to grow further, with the economy indicator picking up, the country starting a vaccination drive and the bank rate remaining below 2021.
Gaurav Dua of Share Khan says that significant index has seen a significant increase from the budget so far. Fears about the pace of economy recovery have arisen due to Covid raising its head once again and increasing bond yields. However, after the recent correction, some positions in the market have become lighter and valuations have also come down. The market can get support around the current level.
Most market experts say that the long-term outlook remains positive, so the recent correction in the market should be considered as an opportunity to buy good stocks.
Talking with CNBC-TV18, Pramod Gubbi of Marcellus Investment Managers said that any short-term fall in the market would be an opportunity for investors to buy in good stocks. He further said that there are many investors who feel that they have missed out on taking advantage of the rally of the last 12 months. He is waiting for a good fall in the market so that he can invest in good stocks.
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