Stock Market: Searching for a bottom - 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?  

Stock Market: Searching for a bottom

Sep 11, 2001

The eighteen month bear market -- till date -- has rocked the boats of the entire investment community. Although the retail investor holds the distinction of loosing his shirt first, all others have followed in due course. The broking community too is feeling the heat, as volumes on the Sensex have fallen by more than half since beginning of the year. Foreign Institutional Investors (FIIs), which have been a bulwark for the bourses, seem to have changed their view. This category of investors has pulled out Rs 1.1 bn in the month of September. Although early days, the quantum of investment has been sliding, which could portend a gloomy scenario. Mutual funds, which have been net sellers since start of the fiscal, have sold 633.9 m of stock for the month to date. However, this could also be due to redemption pressure on mutual funds. With both category of investors turning sellers a new buyer seems to have emerged. The unusual suspect is the retail and momentum investors who seem to be finding current market levels an attractive entry point.

Volumes on the Bombay Stock Exchange have been declining since start of the new fiscal leading to weakness in the Sensex. That said, average daily volumes on the BSE have stabilised, since July '01, between 45 m - 48 m trades. This could signal support for the Sensex at current levels. Also, penetrating the current support level (3,180 levels) could send the index back to the pre tech boom levels of 2,850 seen in the last quarter of calendar year '98.

Nevertheless, right noises have started emanating from Delhi, which could offer resistance to the negativism prevailing in the air. The Government is pondering on spending its way out of the slowdown. It has also consulted with industry captains on chalking out a revival plan. Investment in agriculture features on the agenda for boosting rural demand. Similar announcements could help lift sentiment but markets will look for the Government to 'walk its talk'.

Equitymaster requests your view! Post a comment on "Stock Market: Searching for a bottom". Click here!


More Views on News

An Important Hurricane Update for Energy Traders (Fast Profits Daily)

Sep 22, 2020

In this video, I'll show you how the extended hurricane season in the US will affect traders in crude oil and natural gas.

Mutual Fund Investors Will Now Be Allotted Units Based on NAV of the Day AMCs Receive Funds (Outside View)

Sep 22, 2020

PersonalFN explains how SEBI's new circular on mutual funds impact investors.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

How Much Money Should an Investor Set Aside for Trading? (Fast Profits Daily)

Sep 21, 2020

In this video, I'll give you a simple equation which you can use to decide how much money you can set aside for trading.

Kotak Standard Multicap Fund: Strategizing Growth with Focused Approach (Outside View)

Sep 21, 2020

PersonalFN's analysis on the features and performance of Kotak Standard Multicap Fund.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 22, 2020 (Close)