Indian market took off amid election results, will good days come now?

Share Market News: Trends of the results of the assembly elections of Jammu and Kashmir and Haryana have started coming. Currently, the Congress-led alliance seems to be getting an absolute majority in Jammu and Kashmir, while in Haryana there is a tough fight between BJP and Congress. The effect of these elections is also clearly visible on the Indian stock market, where the Sensex is trading 464 points higher at 81,514 and Nifty-50 is trading 157 points stronger at 24,953. But now the biggest question is whether this boom is really a permanent boom or just a hoax?

Investors lost Rs 25 lakh crore

However, this boom has come before the decline of the last few days, when both Sensex and Nifty saw losses in six consecutive trading sessions. During this period, investors lost about Rs 25 lakh crore. A major reason was the withdrawal of money from the Indian market by foreign investors. In the month of September, foreign investors made a record by investing more than Rs 57 thousand crore in the Indian stock market, but now the situation has changed.

Effect of China's economic assistance

According to media reports, China has announced a relief package to strengthen its economy, due to which foreign investors have turned towards China. On Monday, the Sensex fell by 638 points in the Indian market and closed at 81,050 points, while the Nifty also saw a decline of 218 points. In the last few weeks, the Sensex has seen a decline of about 4,800 points and the Nifty has fallen by 1,400 points.

Reasons for decline

Global brokerage firm CLSA has reduced its investment in the Indian stock market, while increasing its investment in China. According to CLSA, there are three major reasons for the decline in the Indian stock market:

Rise in crude oil prices: The price of crude oil has increased by more than 10 percent in the month of October.

IPO boom: Increase in the number of IPOs in India and the arrival of new investors in the market.

Growing trend of retail investors: Who are increasing their interest in the stock market.

Future prospects

Market experts believe that there are still overall positive sentiments regarding this boom in the market. However, they also say that the market will go into a stable mode for some time, as hedge funds book their profits in November-December. This may lead to a slight decline, but recovery in the market is also possible due to the infusion of money by domestic and foreign institutional investors (FIIs). Experts believe that the market may be successful in breaking its lifetime high next year.

Investment trend in China

Experts say that the situation in the Shanghai Composite Index is also bad. The foreign investors who invested money here are now withdrawing money at the same pace. When the Composite Index opened in the morning, it was at 3674, but later it reached the level of 3379. Similarly, the Hong Kong market has also come down by 7.50%. It is clear from this situation that investors are withdrawing money from the Indian market and moving towards China and Hong Kong.

Conclusion

The results of the Jammu and Kashmir and Haryana assembly elections have had a deep impact on the market. Although there are possibilities of a boom in the future, it is also clear that the market may have to face many challenges. Investors have to be cautious and do in-depth study to understand the market movement.