Current recession is giving opportunity for long term investment

The Indian stock market has also not remained untouched by international tension. The recession continued from Monday last week and deepened throughout the week, but on Friday the market took a turn again and the markets closed after improving, but if we talk about the whole week, there was a huge decline in BSE and NSE indices last week. The week starting from Monday will be full of announcement of results of various major companies included in the index. Traders say that whenever there is a recession in the market, the rule is that it indicates a rise in the times to come. Since there was a one-sided rise in the Indian stock markets and the BSE and NSE indices had also touched new highs, it was necessary that there should be a recession in the market for some reason and the Iran-Israel tension gave this reason to the market. Even now, if there is another decline in the market due to international pressure, then investors can find an opportunity to invest in pieces in companies that are considered good and there is no doubt that when the market will also start improving, only those stocks will move first which will be technically and fundamentally sound. In the current situation, it can also be advised that investors should adopt a flexible approach instead of adopting an aggressive approach towards investment, because the situation is no longer in the hands of any single country. As far as the Indian economy is concerned, according to the data, there is a continuous improvement trend in the Indian economy. This year’s monsoon estimates have been released and it is expected to be normal, in such a situation, apart from the international conditions, the movement of the Indian stock market is also important. Now there are only three major influencing issues, out of which the change in crude oil prices, Lok Sabha election results and the work results of major companies can be considered as the major ones.

There is now an atmosphere of instability in the Indian stock markets. According to the data, last week there was a decline of 1156.57 points (-1.56%) in the BSE index and it fell from 74244.90 points in the previous week and closed at 73088.33 points, while the NSE Nifty index declined by 372.40 points (-1.65%) and falling from 22519.40 points it closed at 22147.00 points. The special thing was that there was a contradiction between the midcap and smallcap indices and the basic index and in contrast to the stability of the basic index, there was a sharp decline especially in the midcap stocks. Talking about the bullion market, this week gold prices improved by Rs 1500 per 10 grams, while silver prices increased by Rs 1000 per kg and gold prices increased from Rs 74,300 per ten grams to Rs 75,800 per ten grams. And silver increased from Rs 84,700 per kg to Rs 85,700 per kg. Traders say that international tension is a major reason behind the ongoing improvement in bullion business, which will continue for now. Now the expectation of fall in bullion will depend on the international conditions, but this rise has reduced the subscription to a great extent.

Regarding the market trend this week, traders say that due to international tension this week, they are expecting stability in the stock market. This week will start with the results of Reliance Industries. Apart from this, the results of many big companies like Hindustan Lever, Tata, ICICI, Nestle etc. will be announced and there will be natural fluctuations in the market based on the results and expectations.

(This is the personal opinion of the author)