Now should you invest in the stock market or not? What do the experts say?

Contrary to the exit polls, the election results caused panic in the stock market and the Sensex-Nifty fell sharply. Sensex lost 4389 points while Nifty lost 1379 points. Sensex closed at 72079 and Nifty at 21884. After such a decline, is it the right time to invest money in the market?

Experts say that India’s economic growth rate is the fastest in the world. Markets can make a quick comeback when the market stabilizes. In such a situation investors get an opportunity to buy good shares at cheap prices. They can invest in this for long term. For now they must wait for the market to stabilize.

Shares of public sector undertakings (PSUs) and banks were the biggest bearers of Tuesday’s fall. There was a decrease of 20 to 23 percent. Along with this, up to 21 percent weakness was recorded in the shares of Adani Group companies. Due to this upheaval in the stock market, the investors had to bear a huge loss of 31 lakh crore rupees.

Gautam Adani took a hit of ₹208,129 crore, Mukesh Ambani lost ₹75,144 crore.

This purchase was made a day ago

It is to be noted that in most of the exit polls, the NDA alliance was predicted to get a huge lead. Encouraged by this, investors bought all-out in the domestic stock markets on Monday, which led to the Sensex and Nifty hitting new all-time highs. The Sensex rallied 2500 points and the Nifty 733 points, but Tuesday’s unexpected election results spooked investors, leading to heavy selling.

Government stocks were badly beaten

PSU and bank stocks included in Sensex companies also suffered badly. Shares of REC Ltd fell by 24 per cent and shares of PFC fell by over 21 per cent. NTPC fell 15 percent. Apart from this, Bank of Baroda saw a decline of 16 percent and SBI nearly 14 percent.

Sharp decline in market capitalization

The sell-off in the Sensex’s majors had an impact on the small and mid-caps. BSE Midcap fell 8.07 percent to 40788.10 points and Smallcap lost 6.79 percent to 44958.48 points. BSE’s market capitalization fell to Rs 394.83 lakh crore due to this sell-off in the stock market. On the last day it was Rs. 425.91 lakh crore was. In this way, investors can get Rs. 31.07 lakh crores has been lost.

This was the case in the last two results

When the Narendra Modi government came to power on May 16, 2014, the Sensex rose 261.14 points or 0.90 percent to close at 24,121.74. On the day, the Nifty rose 79.85 points or 1.12 percent to 7,203 points. On May 23, 2019, when the Modi government came to power for the second time, the Sensex closed down 298.82 points or 0.76 percent at 38,811.39 points. The Nifty ended the day down 80.85 points or 0.69 percent at 11,657.05 points.

This is a big fall in PSU-bank shares

REC 24.07%

PFC 21.62%

Bhel 20.84%

Hindustan Copper 18.53%

ONGC 16.23%

NTPC 14.52%

Bank of Baroda 16.40%

PNB 15.80%

SBI 14.40%

Adani Group has suffered the most

Adani Ports 21.40 percent

Adani Enterprises 19.13 percent

Adani Ports 20 percent

Adani Energy 19.80 percent

Adani Power 19.76 percent

Ambuja Cements 19.20 percent

When does sensex fall drastically?

The Covid crisis: 3943 points or 13.15 percent on March 23, 2020

Harshad Mehta Scam: On April 28, 1992, the Sensex fell by 570 points or 12.77 percent.

American Economic Crisis: 1070 points or 10.95 percent on October 24, 2008.

Covid: 2919 points or 8.18 percent on March 12, 2020

Covid: 2713 points or 7.96 percent on March 16, 2020

American Economic Crisis:1408 points or 7.40 percent on January 21, 2008

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