Stock Market bloodbath 2022-What should investor do?
Stock Market bloodbath 2022-What should investors do now?
Stock Market bloodbath 2022: Indian stock markets opened negative on Thursday amid weak global cues and rising worries about the Ukranien crisis. Nifty opened at 16548.90 levels down by 514.35 points while Sensex made a gap down opening of 1813.61 points at 55418.45 levels. It was a bloodbath for the Indian stock markets as the news broke that Russia orders military action on Ukraine.
Stock market crash today
Huge selling pressure was witnessed in the aviation stocks whereas global crude oil, and gold prices soared after Russian President Vladimir Putin announced military action in Eastern Ukraine today. The Indian stock markets crashed and slipped to the lowest levels in 2022 due to the Ukraine crisis. The volatility index India VIX rose to its highest levels since June 2020.
The escalated war situation between Russia/Ukraine has led to a sharp correction in the equities across the globe, the higher crude price would further increase the inflation and the result will be tighter monetary policy. The Finance Secretary TV Somnathan said India is prepared to handle any crisis due to the situation in Ukraine.
Meanwhile, investors have ignored Moody’s upgraded GDP growth forecast for India for FY22 to 9.5 percent from 7 percent. This is due to a stronger than expected economic recovery from the Covid pandemic 2020-21. However, Moody has retained the GDP growth forecast for FY23 at 5.5 percent.
On the global front, Asian markets closed in the deep red on Thursday. European and US future indexes are also trading in the deep red today due to the Russia/Ukraine war.
Indian stock market indexes at close
At the close, the Nifty index was down by 815.30 points or 4.78 percent and closed at 16247.95 levels while Sensex declined by 2702.15 points or 4.72 percent and finished at 54529.91 levels. The Bank Nifty index plunged 2163.95 points or 5.79 percent on spot and ended at 35228.10 levels.
The selling witnessed across the board, as the Nifty midcap and smallcap index closed lower more than 5 percent. The Nifty midcap index was down by 1634.35 points or 5.74 percent and closed at 26832.65 levels. The Nifty smallcap index declined by622.05 points or 6.25 percent and finished at 9334.80 levels.
Top gainers and losers
There is no gainer in the Nifty 50 index whereas the top losers were Tata Motors, UPL, IndusInd Bank, Grasim, and JSW Steel
The only gainer in the Nifty midcap was Godrej Industries and the top losers were Bank of India, RBL Bank, Apollo Tyers,
The only gainer in the Nifty smallcap index was Sunteck Realty and the top losers were Rain Industries, HEG, Wockhardt.
The most active stocks in the Nifty index in terms of value were Reliance, Tata Motors, and Infy. The most active stocks in terms of volume were Tata Motors, ITC, and SBI.
On a sectoral front, all sectoral indices closed in the deep cut today. The sector that dragged the markets were Banks, Auto, Media, Metals, Oil & Gas, PSU Banks, these sectors closed 5-8% lower today.
What should investors do now?
Indian markets are likely to remain volatile unless there is any positive news from the Ukraine front. Investors are advised to hold good quality stocks or can add in the dip. Traders should avoid any overnight positive and new and weak traders should avoid the market at this moment.
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Editorial desk
