Market: Fall in the market, fluctuations will continue even further, this is the right time for investors to buy cautiously

Expansion

Deven Choksi, Managing Director, KR Choksi says that we do not see much hope about the return of the market in the near term. The way the markets are falling due to rising interest rates and inflation all over the world, in such a situation only safe investments can make sense. If investors want, if the stock is profitable in the market at this time, then make a withdrawal from it. Then invest it in such a place where there is a mix of both debt and equity.

That is, there should be more equity in debt and less in equity. For this, you can do a fixed deposit (FD) for the next few days or if you want, you can choose a short term duration fund. You should not choose any such investment for more than 6 months because whenever the market falls, it definitely makes a comeback. At present, there are many good quality stocks which are 50% cheaper.

invest in good stocks

CA Vijay Minister said that there is a lot of volatility in the markets at this time. It is not just a matter of one country. The whole market is in its grip. There are many reasons for this, which have no solution in the near time.

n Investors should also recover profits at this time. If they want, they can invest in good stocks, especially those that are in decline. There are many such stocks which are currently at cheap prices.

be cautious investors

Foreign investors remained sellers on the back of a strong dollar and rising bond interest rates. Interest rates are going up globally due to the strategy of increasing interest rates by the US Federal Reserve and central banks of many countries. Therefore, investors should take a cautious approach. -VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services

Foreign investors are continuously withdrawing

Statistics show that foreign investors are not only withdrawing money from the Indian market, but they are withdrawing money from many emerging markets. Especially from markets such as India with Taiwan, South Korea, the Philippines and Thailand.

  • So far this year, Rs 2 lakh crore has been withdrawn from the Indian market. Foreign investors have sold shares worth more than Rs 31 thousand crore in June. This trend will continue in future also.
  • The main reason for selling them is that interest rates are rising around the world. That’s why they are taking money out of the stock markets and now putting it in back FD, where they are getting more profit.

small cap is better

The notion that only big stocks can give profits can prove to be wrong at any time regarding investment. Statistics show that like large and midcaps, smallcaps have also given good returns.

  • In the last 10 years, 6 times smallcap stocks have given more than double digit gains, while four times they have given losses.
The year Return
2014 43%
2015 10%
2016 26%
2017 40%
2018 -25%
2019 -2%
2020 20%
2021 41%
2022 -22%
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