The effect of market decline was seen on SIP, these sectors were devastated within a month

Share Market News: The last one and a half months have proved to be challenging for the Indian stock market. The continuous decline in the market has shaken the confidence of investors and caused huge financial losses. Both the BSE Sensex and NSE Nifty have come down significantly from their all-time highs.

Sensex and Nifty decline

The Sensex fell from its historical high of 85,922 to close at 77,578.38 on November 19. At the same time, the Nifty fell from its highest level of 26,166 to 23,518.50. The result of this decline was that investors lost about Rs 48.5 lakh crore, as reported in the Times of India.

Impact on mutual funds

The impact of the decline in the stock market was also clearly visible on mutual funds. In the last one and a half months, mutual funds of almost every sector have given negative returns.

Energy and power funds: Decline up to 8.50%.

PSU funds: Negative return of 8.49%.

Infrastructure funds: Decline of 8.29%.

Midcap and smallcap funds: Negative return of 7.73% and 7.07% respectively.

Multicap funds: Decline of 7%.

Auto and consumption funds suffer the most

This decline in the stock market had the biggest impact on auto sector funds, which saw a negative return of 12.42%. After this, consumption funds suffered a decline of 9.18% and technology funds suffered a decline of 3.45%.

Some relief in the market

After seven consecutive days of decline, the stock market showed signs of recovery on November 19. The Sensex gained 239.38 points and closed at 77,578.38. At the same time, the Nifty touched the level of 23,518.50 with a gain of 64.70 points. However, this relief was limited, and investors' concerns still persist.

Reasons for the decline

Experts believe that there may be several major reasons behind this decline:

Global economic uncertainty: Growing fears of recession in the US and Europe have negatively impacted investor sentiment.

Inflation and interest rates: Rising interest rates and inflation pressure put pressure on the stock market.

Decline in foreign investment: FIIs (foreign institutional investors) are constantly withdrawing money from the market.

Advice for investors

In these challenging times, investors are advised to be patient and stay in the market from a long-term perspective. Continuing to invest in mutual funds through SIP may be a better strategy.

Conclusion

Although the decline in the stock market has shocked investors, the long-term trend of the market remains positive. Investments made wisely in these difficult times can give good returns in the future. Market experts believe that this decline is temporary, and the Indian stock market may show strength again in the future.