The Indian markets have also been shaken by the havoc in the global markets. Nifty has gone down by 300 points. It has broken the important level of 23000. Reliance's 4 percent weakness has increased the pressure. There is also a carnage in the midcap and smallcap. Both the indexes have weakened by about 2.5 to 3 percent. On the other hand, even in the bad market, Bank Nifty is trying to recover. It is showing strength on the strength of HDFC Bank.
The pharma sector which showed enthusiasm yesterday is in a state of chaos today. The Nifty Pharma index has fallen by about 4.5 percent due to Trump's announcement of heavy tariffs on pharma soon. Fears of recession and China's rating downgrade have led to the biggest sell-off in metal stocks today. The Nifty metal sector has fallen by more than 5 percent. Along with this, the auto and IT indices have also fallen by more than 1.5 percent.
The sharp fall in crude is taking a toll on upstream oil and gas companies. ONGC and OIL INDIA have slipped 7 percent. On the other hand, Indigo has gained 2 percent. Also, there is mild buying in select FMCG companies.
Now the biggest question is that what should be the strategy of retail investors after this havoc created by Trump on the whole world? Answering this, Anuj Singhal of CNBC-Awaaz said that some big events have passed and more big events are awaited, in such a situation retail investors should think about wealth creation. If you have a view of the next 3-6 months, then keep an eye on two factors from here. The first of these is the results of the companies. This is the most important. The second important factor is relative strength. Buy those stocks where either the results are supported or buy those stocks where there is relative strength. If both come together then it will be icing on the cake.
Anuj further said that this year will test your mental strength. This year, saving money is more important than making money. For the last 2 years, you can assume that T20 was going on. In T20, you can score 250 runs in 20 overs. This year, assume that a test match is going on in Gaba. We have to save wickets and wait for half volley or full toss. If you trade in this market every day, then loss is certain but if you wait for some special days, you will definitely make money. Keep an eye on these two sectors – pharma and financials. You can also focus on oil marketing companies and crude related stocks. Ignore IT completely for some time.
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