Profit Booking Seen After Govt Stimulus
Due to the Pandemic Corona Virus, the whole nation is in lockdown from the last one and half month. With such crisis the business all around the sectors was badly affected. To help them survive Government came up with a surprise stimulus package of 20 lakh crores rupee. The market was expecting for such big news to come before they start booking profit.
Just after the announcement of stimulus package, market closed at a positive note. But the positiveness didn’t sustain for longer time. Nifty and Banknifty Index has fallen for three consecutive trading session inspite of booster package announcement by Government. Now bear holds the grip on the market weights high on bulls.
Hence, Expert believes market can see another one round of sell off which can deepen Nifty Index to 8000 levels. Fear around the stock market is still there among investors. The most irritating is vaccine for Corona virus haven’t found so far. Though lockdown extensions is still on continue in which nation economy turning into a bad shape.
For the financial year 20-21, till 2nd quarter results can be in a negative side for manufacturer and small corporates in terms of earnings. If its compare to the last financial year quarter based results. Small investors are worried with their investment whether to hold or add new or sell. Recently a nightmare in stock market was seen by all stock market participant in March 2020.
Keeping such market crash and pandemic Corona virus on eye few investors fears to put money in the stock market at current situation. As it has given a decent returns in short term from it’s all time low. Nifty Index all time high was 12400 and it has fallen to 7500 recently. And V shaped recovery was seen in few days.
But the matter is shall market will climb high from here or still pain is there for investors. The mystery is unknown to all because a one bad news can bring market into red or negative once again. So it is better to stay idle or buy premium stocks in smaller quantities keeping backup cash to average stock price at every falls.