Stockmarkets: Where are we headed? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Stockmarkets: Where are we headed?

Jul 27, 2000

The markets tumbled nearly 150 points on Wednesday raising concerns that the bounce back on Tuesday was only an aberration. Talk of the Sensex heading down to 3,800 is widespread. Where are we headed?The Chief of India's largest domestic mutual fund has recently been quoted in a leading business magazine as stating that he expects the BSE Sensex to touch 6,000 by Diwali. These are comforting words for market players who in last 10 trading sessions or so have seen the markets lose over 800 points. Yesterday's sharp fall has only reinforced the belief that the bearishness is likely to persist longer.

The puzzling part of the entire situation is that all market participants (leaving aside the die hard pessimists, ofcourse) agree that the Indian economy has come out of the slow down. This recovery should only strengthen in coming months. Ideally such optimism should reflect in a more buoyant stock market but instead what we have witnessed is a strong bearish sentiment.

Read more on the Indian Economy

One key reason for this, and we have been harping on this over the last month, is that the buying interest in the markets has been skewed among the various participants (mutual funds, FIIs, retail investors and momentum investors). The FIIs have been on the sell side since mid June. The Mutual Funds too have been large net sellers since then. The momentum investors, after a brief bullish outlook, too, have been limiting exposure to the markets. And finally, the retail investor, that's us, has been left all confused (and in many cases with lots of losses). The result is that we have a market where none of the large players is committing funds.

Will the situation improve in the coming days? Let's put it this way - for the situation to improve we need a trigger. Whether it be FII buying, disinvestment or some good economic numbers. Unless there is some trigger it is unlikely that the situation will alter dramatically.

Where are we headed? The sentiment is largely bearish even as value investors are having a field day picking up good stocks with attractive valuations. And that too in large quantities. Who ever said that there are little buying opportunities in this market!

Equitymaster requests your view! Post a comment on "Stockmarkets: Where are we headed?". Click here!


More Views on News

The Top 6 Artificial Intelligence Plays in India (Views On News)

Dec 6, 2021

Investors looking to tap into AI theme need to keep an eye on tech firm leveraging the power of AI are making things possible.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Prepare for a Stockmarket Pandemic in 2022 podcast (Views On News)

Dec 6, 2021

The transition from a small correction to a market crash to a bear market may be without any warning.

SEBI Issues Operating Norms For Silver ETFs. Here is All You Should Know (Outside View)

Dec 6, 2021

SEBI has issued operating norms for Silver ETFs to ensure uniformity of the schemes.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 6, 2021 (Close)