On the morning session of Monday 5th April 2021, the benchmark index Sensex and Nifty has fallen by more than 1,000 and 300 points respectively. So, what are the reasons behind this drastic fall in the benchmark indices, let’s discuss it below.
Sensex is down by nearly 1260 points and has gone below the levels of 49,000 whereas Nifty is down by nearly 2.37% or 340 points and went to the levels of 14,500 during the first 3 hours session of single-day trading on Monday 5th April 2021. Almost all the sector indices are trading in red figures except for the IT sector index. Especially, Bank Nifty has witnessed the highest fall of nearly 1200-1300 points.
The prime most reason behind the fall in the Indian stock market is the rising covid-19 cases. India has recorded more than 1 lakh cases on Sunday.
Also, among all other states in India, Maharashtra is recording the highest number of cases. On Sunday, 4th April, Maharashtra recorded more than 57,000 cases alone. In response to this, the State Government has also announced Mini-Lockdowns starting from every Friday 8 PM till Monday 7 AM.
Apart from this, there will be certain restrictions during the daytime also.
All these steps will certainly affect the economy of the Maharashtra State.
Maharashtra contributes nearly 14% of the total GDP of India.
Maharashtra is also the major industrial state and it obtains the first position in the Indian Economy in terms of contribution
And thereby, rising Covid-19 cases, Lockdowns, and other restrictions in this state are affecting the market sentiments, and hence the market is witnessing a bloodbath.
Talking about the foreign market, Asian Market is reacting very oppositely to the Indian Market Scenario. The Asian Markets are trading in Green.
The answer is a big “NO”. As in March 2020, Covid-19 was Pandora’s Box, there was no having a perfect solution in terms of vaccines.
But now, Vaccination Drive is going at a great pace in India.
No major market corrections should be expected.
In addition to the point of Vaccines, Liquidity was also not available during March 2020 to handle the economy. But, now, there is an ample amount of liquidity available in Global Economies.
Red is the Colour of Opportunities when you are investing in the Stock Market. The market fall of Today i.e., 5th April 2021 can be an opportunity for the investors to invest in Good Companies. One may also look for the monopoly companies in the market. As general advice, one can allocate 30%-40% in Lump Sum and rest in a Staggered way. Do your research and study before investing.
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