Mayank Rocks

Most of us did not expect the market to fall so low on the budget day, well at least I did not.  Investors have lost 2.54 lakh crores today as the market tumbled 870 sensex points. I had thought that the market would do very well, only because of the certain sectors that were supposed to get good benefits like the infrastructure or the banking sector. Although infrastructure did get a boost in the budget but the banking sector did not. Infact there was a heavy loss in the banking sector today. The 6.8% fiscal deficit could be an important reason of the sell out at the market as that figure seems quite high. There were also no measures stated to improve the deficit figure which could also be a reason for the loss seen today. Even though the budget was not so bad that it would see such a huge loss in the market since there were very high expectations from the market. I would also blame Pranab Mukherjee for his lack of presentation skills. If only the budget was presented in a better manner, the losses could be quite less. As if you don’t explain and just say one line, the non market experts could actually take the statement in a different manner than it is meant. Majority of the investors’ aren’t market experts who can analyse things and make a decision.

I was monitoring the budget and the market simultaneously and as I noticed a fall in the market, sensex being around -150, I sold the shares I had bought a few days ago since it looked certain that the market is going to see a sharp fall today. I believe that the market will continue to fall for a few more days before it stablises itself and so prepare for more losses, incase you still have shares invested. We can even see the market below 13,000 in the coming days. Although it’s been clear that the market will bounce back very soon, but for now the sell out is expected to continue for a few more days. I have planned to invest again as soon as the market becomes stable which could be next week. If you had bought any share in recent days and there is not much loss till today, then sell out tomorrow and wait for the market to stablise and then invest the money again, you could end up making more profit then.