For some time now, the inclination of foreign investors from the Indian market has increased towards China, the effect of which has been seen on the stock market. During this period, FIIs have withdrawn Rs 1 lakh crore from the market. On September 27, when the market made a new high. Since then it has fallen by about 10 percent, in which investors have lost Rs 48 lakh crore. Now global brokerage company CLSA has published a new report, in which it has been said that now in the new term of Trump, we may see a trade war between America and China. This report of the firm has awakened new hope among investors.
Investors can take these steps
Considering the current decline, you can think of investing money in some specific sectors. Which includes sectors like Pharma, FMCG and Defensive. These sectors are likely to give stable returns from here. The pharma sector benefits from increasing health awareness and government incentives that promote local production. Experts believe so.
Market expert Anirudh Garg says that meanwhile the demand for FMCG companies remains stable, because they provide essential goods, the demand for which remains despite economic cycles. This stability in cash flows and relative isolation from market volatility makes FMCG an attractive sector. Same is the condition of defense sector also.
This is top secret
At this time, investors should move away from aggressive returns and focus on saving capital safely. He says that diversifying your funds should be the most important topic for every investor at this time. After that, when it comes time to invest, they can consider mutual funds and gold. However, if ET’s report is to be believed, the market may fall further. In such a situation, if a person invests his funds at a gap of some time, then it can become an option for good returns in the long term.