Veteran investor Basant Maheshwari is known for giving his unique and out-of-the-box opinion on the stock market. Basant Maheshwari wrote something like this in an X post on Wednesday, after which it went viral.
Maheshwari’s post comes at a time when domestic benchmark indices BSE Sensex and NSE Nifty have fallen nearly 10 per cent from their respective record highs and entered the correction zone. The post prompted a flood of comments from
The veteran investor posted on Don’t know how to divide…everything is being cut…
Today the market continued its decline for the fifth consecutive session. The 30-share Sensex fell 984 points or 1.25 per cent to 77,691 and the Nifty index fell 324 points or 1.36 per cent to 23,559. At today’s closing levels, Sensex and Nifty have fallen 9.64 percent and 10.34 percent from their highs.
Why did Sensex and Nifty fall today?
The rising inflation data pushed expectations of an interest rate cut by the RBI next month, leading to a further decline in the market amid sluggish corporate earnings and continued exit of foreign investors. According to government data, retail inflation reached a 14-month high in October.
Prashant Tapase, Senior VP (Research), Mehta Equities, says with inflation rising sharply again and crossing the RBI’s comfort level, hopes of any major interest rate cut by the central bank in the near future are dashed. , Due to which panic spread in the market. Additionally, continued selling by foreign institutional investors (FIIs) in domestic stocks, as well as a rise in US bond yields and poor corporate earnings data, have prompted foreign investors to invest in cheaper markets such as China.
Vinod Nair, head of research at Geojit Financial Services, says the fall in small- and mid-cap stocks was more severe. Mid- and small-cap stocks were the most affected, while the financials and auto sectors also showed significant weakness. This trend is being seen across emerging markets as markets remain concerned about future US policies, including trade issues and the impact on the global economy, which is reflected in the strengthening of the US dollar and rising yields.