share market down
The American market also fell heavily on Tuesday due to the tariff policies of US President Donald Trump. The S&P 500 fell nearly 1.3 percent in early trading on Tuesday due to the crisis over the occupation of Greenland and the threat of imposing tariffs on 8 NATO countries. The Dow Jones Industrial Average fell 642 points, or 1.3 percent. At the same time, a sharp decline of 1.5 percent was recorded in Nasdaq Composite. Along with this, the Indian market is going through a period of continuous decline. Sensex has fallen by more than 38,00 points in the last 7 weeks. In such a situation, let us know what is the expert’s opinion regarding the market?
Rohit Srivastava, founder of Indianarts and Strike Money, has advised investors to be cautious regarding the current market situation. He believes that global equity markets may be entering the early stages of a turning point. For this reason, he himself has decided to maintain 100 percent cash in his personal portfolio for the time being, while he has asked his clients to adopt the strategy of holding 30 to 50 percent cash.
Will the market remain like this for a long time?
While talking to CNBC-TV18, Rohit Srivastava said that till now the bullish journey in the markets has been good, but it would not be right to look at the current situation only in terms of trade or technical correction. According to him, this has now taken the form of a big geopolitical issue, whose impact can remain on the markets for a long time. Such issues are not resolved quickly and the uncertainty can last for several months, leading to further sharp fluctuations.
He clearly said that in the present times, remaining completely in the equity market can be a risky decision. His advice is that investors should prepare as much cash as possible, so that losses can be limited in difficult times and investments can be made when better opportunities arise in the future.
Recent trend of Indian stock market
Talking about the Indian stock market, here too a big reversal has been seen in recent times. From the all-time high level which Nifty 50 had reached at the beginning of the new year, there has been a significant decline in the market till now. Since the peak on January 2, the market cap of companies listed on BSE has been wiped out by about $300 billion.
Rohit Srivastava believes that investors should be mentally prepared for the worst situation. According to him, the possibility of further decline of 10 to 20 percent in global equity markets cannot be ruled out. He says that first vigilance and preparation is necessary, later it can be expected that the situation will not be so serious.
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