The Indian stock markets have been falling since last Friday (2nd August 24) and have corrected by almost 1000 points on Nifty 50 from its recent all-time high of 25000. The fall in the broader market has been widespread.
This fall has been attributed to the following
- Global turmoil in financial markets, especially US and Japanese markets. The Nasdaq has fallen by more than 11% and the Nikkei over 25% over the last two weeks or so
- Recession fears in the US as job data is very disappointing
- Fears of Armed Conflict in the Middle East
- Fears of rising debt over the US economy(37 trillion dollars debt on 30 trillion dollars GDP)
- Unwinding of Dollar – Yen trade as Yen appreciates by almost 11% over a dollar in the last month
- Delay in reducing interest rates by US Fed
All these factors are external to India and may affect us in a limited way if at all they do.
The Indian economy is doing well and is expected to continue to be the fastest-growing economy in the world for many years. There has been no deterioration in any of the financial indicators in the recent past. The corporate profits are on the rise as reflected in the quarterly results of QE June 24.
In my opinion, the markets have to find an excuse to correct as the market growth is non-linear and needs to be corrected from time to time. Indian markets(read Nifty 50) have gone up by almost 20% over the last two months since election day results on 4th June. Such a uni-directional steep upmove can not be sustained for a long time.
The ongoing correction in our markets may be sharp and nerve-wracking and at the same time provides great opportunities to invest more. It may be difficult to predict for how long the markets will correct and by how much but the recent trends show that the corrections are steep and short lived.
All the previous corrections were seen as a lost opportunity, the ongoing correction won’t be any different
So, dear friends, hold on to your horses and avoid selling your investments in the current falling markets. This is the time to start investing more and not to sell
More importantly, avoid listening to all the negativity spread on various TV channels / social media. Use your own judgement.
Like previous corrections, this shall too pass over…
To discuss any queries related to personal finance, book a session with me at https://calendly.com/rakeshgoyal . It’s free and confidential
To remain updated on money matters, join my telegram group at
https://t.me/+SB3F7hQPbxNlMTc1
We, at Lets Invest Wisely, help you manage your finances better and improve your relationship with money…
We help you invest through mutual funds, Portfolio Management Services(PMS), Corporate FD, and Term Insurance(to protect your family from financial loss in case of premature loss of life) and plan distribution of your assets to your next generation through Estate planning (Writing of Will, and creation of a family trust)
We are committed to offering financial services most transparently with a high degree of professionalism, integrity, objectivity and complete fairness with the sole aim of keeping your needs always first and every time.