Indian Market is Heading For An Crisis, Investors Be Aware!!

 Indian Market Is Heading For An Crisis, Investors Be Aware!!

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Indian Market was at the low ebb during the entry of COVID-19, starting from March, 2020. But the Stock Market, Commodity Market, Forex Market, all paved way to the slope, and investors especially the marginal ones are in a panic situation. 


Big correction already happened in India and United States Market, but still Europe especially United Kingdom was in pity condition. 


At that time the Crude Cartel was also worried about the Russia - Saudi Arabia Oil Price War, which triggered the fall of Crude oil to the lowest position. 


Recession was everywhere, to be seen. Unemployment was galloping faster, as private companies, schools, even Government Organisation were asked to sit home for a period of 60 days. 


The OECD has pointed out that Business in all caters of life, became indebted, and Government has pointed out to have an accommodative monetary policy and low cost of borrowing. 


The credit ratings crashed, low investment bonds, leveraged loans has risen to alarming level, which made businessmen to cut cost, which affected the overall employment of the economy.


 
The stock market has declined overall by 30%, which is considered to be an alarming sign for individual investors. 


On 9th March, S & P 500 fell by 7% in just 4 minutes which triggered a circuit breaker and closed the trade for 15 minutes. STOXX Europe has fallen by 20%, Nikkei 225 has fallen by 20% respectively. 


Position of Present Indian Stock Market Position:

Indian Stock Market is sitting in a comfortable position but the amount of P-Notes is garnering very high, amounting Rs. 63,000 Crore. P-Notes are issued by registered Foreign Investors, who provide access to Indian Stock Market for those who don't have license to trade in Nifty and Sensex. 


According to SEBI, amount of P-Notes invested in stock market is Rs. 60,000 Crore, while in April - May it was just Rs. 50,000 Crore. Investment level was low in March, 2020 at Rs. 48,000 Crore. This was due to crisis happened all over the world, due to Corona Crisis. 


Rs. 52,000 Crore were invested in Stock Market, Rs. 10,000 Crore in Debt, Rs. 250 Crore is in Hybrid investments, Rs. 190 Crore in Derivative Segments. 


Before the Corona Crisis, fund inflow was considered to be very high from November, 2019, it was Rs. 69,670 Crore, December 2019, it was Rs. 64,537 Crore, January 2020, it was Rs. 67,281 Crore, and February 2019, it was 68,862 Crore respectively. 


Now, seeing with foresight SEBI has come up with New P-Notes policy like having a separate registration for underlying derivatives. 


It's time for all individual investors to take this as a warning signal, that the Stock Market is going for a huge correction within a couple of months. BEWARE...........






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