Monday, February 07, 2022

Why the indian markets are going down ?

FII's have sold more than Rs 1.4 lakh crore worth of Indian Equities since september 2021.The decisions by fed could hamper FII flow in emerging markets,including India in the coming months.

The US Fed rate hike is a big event spooking the global world markets.There will be solid direction only when the definite hike schedule is announced.Due to speculation, there is confusion and volatility.The Indian markets will only rebound once the situation clarifies itself.It may take weeks or months for the Indian markets to get back the momentum.The DII's and retail investors are keeping the market from going down drastically,otherwise the fall would have been more. Some experts predict that the situation will only get better by May.

You can see the stocks which have higher FII holdings like IT stocks are going down more although they have strong fundamentals.These stocks will come back strong,once this selling by FII stops.

Oil prices are back above $90 per barrel now, and if it hits $100 per barrel in the near term,it will further dampen the market sentiment.

Outcome of UP elections will also be one event that can change the course of the  Indian market.

The retail investors should be very careful and be stock specific. 

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