Last week a big fall was seen in the Indian stock market. The Sensex fell by more than 4,000 points, causing investors to lose around Rs 19 lakh crore. This decline has put small investors in confusion. Investors are worried about the direction of the market in the coming week. Experts say that global indicators and activities of foreign portfolio investors (FPIs) will have a major impact on market movements.
Recently, FIIs adopted a selling stance, which increased pressure on the market. If this trend continues, the decline may increase further. At the same time, stability can come when the selling stops. According to experts, global indicators like dollar index and US bond yields will give direction to the market.
Weakness of rupee and prices of crude oil in the global market will also affect the market movement. Due to weakness in rupee, imports become expensive, which affects the profits of companies.
Due to Christmas holidays this week, business activities in the market may remain sluggish. Experts at Motilal Oswal Financial Services believe that due to holidays in global markets, there will be limited activities in the local market as well.
According to experts, the period of ups and downs in the market will continue. Instead of panicking, small investors should adopt a cautious approach. The market is still attractive for long-term investors, but caution is necessary from a short-term perspective.
The direction of the market will be decided based on global economic data, investment stance of FIIs and domestic market situation. However, experts are cautiously optimistic about the market. The current situation of the Indian stock market is challenging, but the long-term investment outlook remains positive. Investors should take informed decisions keeping an eye on global indicators.
