Sensex has broken more than 2800 points in 9 trading days of this month. Investors have also suffered a setback of about 11 lakh crores in this month’s fall.
Stock Market Strategy: The month of June has so far proved to be a sinking of investors’ money. Sensex has broken more than 2800 points in 9 trading days of this month. During this, the Sensex weakened from the level of 55566 on May 31 to the intraday low of 52735 on June 13. In the month of June, out of 9 trading days, the market has shown weak 7 days. At present, investors have also suffered a setback of about 11 lakh crores in the fall of this month. As far as today is concerned, the Sensex is down by more than 1450 points, while the Nifty also slipped below 15800.
11 lakh crore cleared in June
In this month, those investing money in the stock market have suffered a lot. So far in 9 trading days, the market cap of companies listed on BSE has reduced by about Rs 11 lakh crore. When the market closed on May 31, the market cap of companies listed on BSE was Rs 2,57,78,368.28 crore. Whereas it has come down to 2,46,82,509.65 crores till 12 noon today. That is, the wealth of investors of about 11 lakh crores got drowned in this decline of the market.
Why there was a big fall in the market today
Santosh Meena, Research Head, Swastika Investmart Ltd, says that inflation data has come in USA on Friday. Inflation is at record high. In the month of May, the Consumer Price Index has seen the biggest increase since 1981 on an annual basis. Due to which there have been signs of pressure on the economy and selling was seen in the markets around the world. In view of inflation, the market is now speculating that the US Fed may be more strict about its policy. If this happens, then the sell-off from FII’s and FPI’s may increase further, which is still a matter of great concern for the market.
There is a continuous decline in the rupee and today i.e. on June 13 also this record has come down. Today it has weakened to the level of 78.29 per dollar. Nothing can be said about how long the war between Russia and Ukraine will last. Energy prices are sky high. Due to all this, the market has become confused about the risk and uncertainty. Risk Capital has a permanent loss. At the same time, due to uncertainty, there is a sell-off in the market and when it is subsidized then the market is normal.
What should investors do?
Santosh Meena says that there will be volatility in the market in the short term. Corporate earnings will be affected due to inflation. But talking about mid to long term, there are investment opportunities. There are many such companies, whose earnings are better and the balance sheet is getting stronger. Their fundamentals also remain strong. They are also getting the advantage of competition in the sector. Waxey also appears to be a better place than Pierce on the basis of domestic market growth factors and ability to cope with inflation. In such a situation, identify quality stocks on this decline and they should be included in the portfolio.
