Domestic markets have shed more than 2,100 points this week. On Friday S&P BSE Sensex opened down by more than 1,100 points with all the 30 stocks that constitute the index trading in the red. Before buying shares today read what analysts have to say.
Domestic markets have shed more than 2,100 points this week. On Friday S&P BSE Sensex opened down by more than 1,100 points with all the 30 stocks that constitute the index trading in the red. On the broader Nifty-50 index, none of the stocks were in the green when markets opened as the index fell below the 11,400 mark and later in the day dropped lower to trade at 11,289 points. Blue-chip stocks like Tech Mahindra lost 10 per cent during the week while Tata Consultancy Services was down 7 per cent. Investors may rush in to buy stocks at this point; however, analysts and experts advise caution this time.
It is panic mode, said Vishal Wagh, Research Head, Bonanza Portfolio. “Rupee is going towards the 74 levels, that is depreciation of more than 3-4 per cent in rupee, which may create more panic in the markets.” Vishal Wagh told Financial Express Online. With Coronavirus sending the markets into a downward spiral as Chinese economy remains in a virtual shutdown, global markets are seeing as sell off as investors are failing to find any positive news around Coronavirus.
Investment Advisor Sandip Sabharwal, while accepting that there is an urge to buy in the current market situation when the prices are down, said that he would advise controlling the urge as “the worst might not be over”. “We need to wait it out as the impact of Coronavirus could be more,” he told Financial Express Online.
While saying that there is definitely an opportunity to buy Vinod Nair, Head of Research, Geojit Financial Services said that investors should remain wary. “There are opportunities right now there is no doubt about it but, having said that we have to see long this problem will continue for the markets. I don’t know we should expect a ‘V’ kind of a recovery or a ‘U’ kind of recovery so it is not fair to invest all your money today,” he added. While Tata stocks are down today in the market Nair says that although the prices are down they could slide further because of the company’s linkage to China.