Sensex breaks 6000 points, signs of further decline, experts say – stop

The results of the Lok Sabha elections show that the BJP is once again forming the coalition government in the country but the figures are totally against the expectations. In fact, it was believed that the BJP would achieve majority on its own, but that doesn’t seem to be the case. In such a situation, stock market investors also look nervous. Due to this, the Sensex fell over 6000 points during the trading while the Nifty also saw a decline of over 1000 points.

What the experts say

Analysts say if the final tally of NDA seats falls below the 300 mark, it could be the start of a short-term decline in the market. Kranti Bathini of Wealthmills Securities said the market had projected around 350 seats for the NDA after the exit poll results. Now if it goes below 300 then it will be a big disappointment for the buying investors. “I think the market will stabilize once again,” said Deven Choksi, a veteran investor at Dalal Street.

A decrease in the share of each sector

Apart from banking, PSU shares, power and energy shares also saw a big decline in the stock market. Dalal Street’s fear gauge India VIX surged 40% to 29.79, marking its biggest one-day gain in nine years.

Big loss to new investors

Vinayak Mehta, Founder, Infinity Group said – New investors, especially those who came into the market post-Covid-19, may not have experienced a market correction before. Inexperienced investors can suffer huge losses during a correction. Hence research and effective risk management is essential. Analysts believe that retail investors should not rush to buy when the market is falling. Market veteran Sanjeev Bhasin said – Try building your portfolio on stocks like HDFC Life, Ultratech, ABFRL and Vodafone Idea.

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