Indian markets experienced a downturn on Friday, 2nd August 2024. Index Nifty dropped by 1.17% to 24717.7 and Sensex has fallen by 1.1% to 80981.
All indexes faced a gap-down opening, thereafter market tried to recover but it could not do so at all.
Up to 4% downfall was shown in Tata Moters, Maruti and Tata steel, this became the main reason for this downturn and Tech Mahindra, Adani Ports, JSW Steel, ICICI Bank, UltraTech Cement and SBI were contributed to the downturn.
What else this recent trend indicating, let’s try to find out:
Increased volatility:
India VIX has surged, and its an indication of high volatility, and becomes the reason of sharp movements in the stock prices. This could continue in recent future due to various economic and political factors.
Short term correction:
It may be due to a short-term correction, as indexes are on the top, and a need for correction is felt by big investors, no one want to more buy at inflated prices.
Global Uncertainty:
Uncertainty is floating in the international market, investors are cautious due to these uncertainties and are not in the mood of buying, a leading investing company led by Warren Buffett, the Berkshire Hathaway, is selling stocks significantly, they just want liquidity in their hands so a fresh investment could be made when need arises.
Profit Booking:
As the markets is on the top, some investors may be in the mood of profit booking and this could lead to the further downturn of the Indian and Global markets.
A cautious approach is needed while making an investment decision and if you want to enter trades, stay informed, be caution and invest safe.
