Indian stock market continues to fall: What small investors should do..?

By Mr. S. Sridharan, Financial Advisor, https://www.walletwealth.co.in/ 

 

Indian stock market continues to fall: What small investors should do..?

Indian stock market continues to fall: What small investors should do.?
Indian stock markets have been on a downward trend for over a month now. The Sensex and Nifty indices fell around 8-9 percent. 

Let's see what small investors should do next.

The result of the US presidential election..!

There are many reasons for the fall in the Indian stock market. That means the US presidential election is taking place today (October 5, 2024). Fear of the outcome of this election is seen more among small investors. A change in US interest rates is likely if Kamala Harris wins the presidential election. It is estimated that a decision on interest rates may be delayed if Trump wins. 

Apart from this, the US Federal Bank's interest rate meeting will be held on October 6 and 7, 2024. The Federal Reserve Bank Governor had already announced that interest rates would continue to be cut. In this situation, there is fear in the stock market as to how this result will be.

The September quarter financial results for the current financial year 2024-25 from July to September are now out. These results are often not as expected. This has created dissatisfaction among investors.
Crude oil prices are now up around 2% after last month's biggest decline. As the price of crude oil continues to increase, the rate of inflation in India is likely to increase. As a result, RBI may raise interest rates. RBI has not made any change in interest rate for over 18 months.

Geopolitical tension..!

Apart from this, geopolitical tensions continue to prevail. Israel-Iran war tensions have created a lot of tension in the stock market. Investors should not panic as stock markets continue to fall. Increase investment in stock market and equity oriented mutual fund schemes as much as possible. Generally, an additional 10 percent should be invested whenever the stock market falls more than 5 percent.

No one can accurately predict when the market will crash in the short term. So it would be a wise and profitable decision for investors to invest little by little rather than investing all their money in hand.

Large Cap Stocks, Large Cap Funds..!

Those who want to invest in the stock market should go for large cap stocks and those who want to invest in equity funds should go for large cap funds. Because the Indian stock market is likely to fall further.

Meanwhile, large-cap stocks and large-cap funds tend to grow faster during a rally after a downturn. This is less likely in small and midcap stocks and funds. 

 

For more details and investment advice..!

Mr. S. Sridharan, Financial Advisor, https://www.walletwealth.co.in/

Wealth Ladder Direct

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Website: https://www.walletwealth.co.in/

 

You can contact Mr. S. Sridharan for all types of insurance including mutual fund investment, medical insurance, and life insurance.

Read articles written by Mr. S. Sreedharan in Nanayam Vikatan, a leading personal financial management magazine .

https://www.vikatan.com/author/855-sridharan-s

 

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