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Volatility in the Cboe Volatility Index, which reflects expectations of stock volatility, has been muted by comparison, though the index hit a five-month high earlier this week. BlackRock, the world’s largest asset manager, was among those pinning the recent turbulence on the Fed’s monetary tightening campaign, which saw policymakers raise rates by 450 basis points over the past year. The Nations TailDex, an options-based index that measures the cost of hedging against an outsized move in the SPDR S&P 500 ETF Trust, earlier this week rose to its highest level since May as banking worries percolated. Invariably, the real impact of hike in interest rates is not dampening consumption in these economies. As far as profitability is concerned, yes, because of rising interest rates there will be pressure on margins of these banks. However, the developments over the last three-four days are pointing that the Fed Pivot could be here.

The BSE market capitalisation fell to Rs 246 lakh crore from Rs 256 lakh crore in the previous session. It was down a whopping Rs 16 lakh crore since February 16 close of Rs 246 lakh crore. One out of every six stocks had hit its lower circuit limit by this time.

Last March, Pitchbook released a report warning startups of a slowdown in venture funding and how to deal with it. Matt Turck of FirstMarkCap, a New York-based VC firm, said the “growth market was pretty much dead”, and the market is seeing a marked slowdown in Series A and B. In 2021, the global venture capital investment amounted to a staggering USD 643 billion.

The important thing to remember is that you should diversify your entire portfolio into different asset classes because we all understand how delicate the financial markets are. Every rise in the price of an asset cannot be considered a stock market bubble. However, if the stock price goes beyond its intrinsic value and you observe that the cycle follows a pattern of the stages of an asset price bubble, then it may be possible.

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This contributes to the market falling further down as investors start to panic sell. This is because investors want to minimise their losses and think that selling their holdings before the market falls further might mitigate their loss. The mass-selling acts as a representation of falling demand, and when demand falls, prices follow.

• A chain of net sales of Indian stocks by FIIs has once again started to play spoilsport.
• The reason being the US Federal Reserve’s intervention in the market to cut down the interest rate in order to maintain market liquidity.
• “A recession in the US this time is likely to be as bad if not worse than the 2008 financial crisis.

Kedar Kadam, director, Listed Investments, tells Prasanna D Zore/Rediff.com why the Indian markets saw a selloff frenzy on Monday, March 13. Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here’s why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

It is a fact that the price of financial securities will not keep rising forever. After years of enjoying a bull market, the investors have to experience a bear market. A few of the previous stock market crashes that went into the bear market were the 1929 Great Depression, the 1987 Black Monday, the 2001 Dotcom Bubble and the 2008 stock market crash. Now, no threshold can be specified as a stock market crash, but usually, it is a double-digit fall in a stock market index. As soon as this happens, most of the investors start panicking.

While a crash in stock markets or a market correction is impossible to predict, there are various strategies that investors can utilize to minimize its impact on their investment portfolio. A stock market collapse typically occurs when the economy is overheated, inflation is rising, market speculation is rampant, and there is significant uncertainty about the path of an economy. As a result of these factors, the stock market fall frequently begins as a trickle and finishes as a disaster as investors seek a quick quit or exit option. It might fall in unfavourable ways due to the strong interplay of the bull market, bear market, and stock market bubble.

After a sharp fall last week, should you buy the dip or sell on rise?

In an environment where interest rates are rising, retail deposits will act as a big supporter. It will not be like if this sector is working, then all the companies within this particular sector will start rallying. Given the correction that we have witnessed so far across companies, valuation multiples are making companies attractive from the long term investment perspective.

https://1investing.in/ may please refer to the Exchange’s Frequently Asked Questions issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard. 30-day online access to the magazine articles published during the subscription period. It’s very difficult to time the market; the kind of market that we are in is totally different. I think one should play very selective as far as the entire BFSI sector is concerned; there are some very good companies in the sector, but given the environment that we are in one would never know when we would hit the pole. Add to that the threat of El Nino which could damage crop acreage and production this agricultural season thereby putting more pressure on food price inflation. Inflation is driven by supply side pressure rather than excess money supply.

JM Financial Slacks Zomato’s Growth Forecast By 4%

There are a set of things—basic ideas about investing—that one can remind oneself when the market is looking shaky. The 30-share pack Sensex declined 276 points or 0.51 per cent to close at 54,088. Its broader peer, NSE Nifty, dropped 73 points to settle below the 16,200 mark.

• This is because Equity investments, especially when purchased at low valuations, have an unmatched ability to boost your investment returns for long-term goals such as retirement.
• As many as 110 of the stocks are linked directly to agri commodities, such as sugar, rubber, tea and coffee, the sector classification suggests.
• As the world enters another period of uncertainty, looking back at tough episodes in the past can provide a useful perspective on how to deal with the current one.
• Start today and build a strong and more diversified income portfolio excluding the stock market.
• Even domestic inflation, which hit 6.95 per cent in March, continues to be a cause of concern for Indian markets.

I must also say that if there is scepticism, I would be less concerned. When there is complete confidence that this market is going to go up, that is when I would be concerned. Another factor that has impacted the market sentiment is the concern over rising Covid-19 cases in China, and the slower than expected pace of growth of the Chinese economy. As inflation continues to remain a big concern, there are expectations in the market that the US Fed may increase the pace of rate hike; instead of a 25 basis point hike, it could even go for a 50 basis point hike, experts believe. Indian markets that opened after a gap of four days fell sharply in line with growing concerns over various developments, including the continuing Russia-Ukraine war.

It feels so much like the Dotcom crash

Within four business days , the stock market index in the US fell. The Dow Jones Industrial Average, the index with 30 listed companies, displayed a 25% fall in stock prices. The most recent stock market crash we all experienced was during the global pandemic of Covid-19.

The paradox of good economic news turning out to be bad news for markets is playing out. Data from US on consumer confidence, jobless claims, and Q3 GDP numbers surprised on the upside, indicating continuation of the hawkish monetary stance from the Fed,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said. In its recently released monetary policy statement, the RBI signalled a shift in its focus from reviving growth to mitigating risks posed by inflation. Even as it kept the policy rates unchanged for now, it indicated a possible hike in repo rates going forward.

There have also been concerns over the European Union embargo on Russian gas, and some sanctions on Russian crude in the next set of EU sanctions. The US is in its fourth super-bubble in 100 years, according to Jeremy Grantham, co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo. S&P 500, Dow 30 and Nasdaq Composite were down by 3.2 percent, 1.99 percent and 4.29 percent, respectively.

Just when we thought the momentum died off, Snap Chat’s result triggers another round of down move. The bears are back on the saddle riding the NASDAQ down down down! I wouldn’t be surprised if it touched around 9k in a few weeks. IT & auto stocks were significant drags, with Tech Mahindra, Infosys and M&M among the top losers on the exchanges.

Maybe the world will see the breakout of peace in china’s new digital forex ‘isn’t bitcoin and isn’t for speculation’, the taming of inflation, lowering of interest rates globally and, hence, a fabulous stock market boom. On the other hand, maybe the Ukraine war will escalate, inflation will surge again, and a deep global recession will send stock markets crashing. While the rate hikes were expected, a sharp increase could result in faster outflow of funds by foreign portfolio investors, and could keep the emerging economy markets and the domestic equity markets under pressure. Harshad Mehta took capital from banks and invested them into the stock markets promising banks a high return. Mehta would invest in selected securities and the huge investments made on behalf of the banks would hike up the demand for those shares. He would then sell the proceeds passing a portion of the profit to banks.