New Delhi: Indian Stock Market investors’ wealth eroded by Rs 9.51 lakh crore on August 5, 2024 (Monday morning), as the benchmark Sensex plunged over 2,400 points and Nifty fell over 450 points. With Indian indices continuing to fall since last week, let’s see what stock market expert Prasunjit Mukherjee has to say on the way forward.
Speaking exclusively to News9 Live, the SEBI registered market expert said he is happy with the downfall in the Indian stock market as it is a healthy and a rationale correction which is happening because of the profit booking, US Federal Reserve not giving a clear indication on rate cuts and global markets trading in Red.
“The Indian Stock Market has been bleeding since last week and today also the indices have fallen. We were expecting some profit-booking and correction and the biggest concern was whether the United States Federal Reserve is giving any que on the interest rates and the domestic earning season (companies’ Q1 Results of 2024-25).
As we near mid-August, a lot of earnings have been declared. Though, the top line has not seen substantial growth but overall the companies’ growth has been good. PSU Sector has reported more than expected profit growth. However, our domestic market is taking a que from the world markets, especially the NASDAQ which closed 2.1 down last Friday (August 2). The US Fed Reserve is not giving any clear indication even though interest rate continues to be on the boil and expectations are that the rates will be lowered but we are not seeing any indication on that front,” Mukherjee said.
‘Would be happy if Sensex drops to 70000-73000 mark’
Expressing happiness over the stock market fall, the expert stated that he was expecting profit, but also went on to say that the current decline in Sensex and Nifty are nothing. Mukherjee said he would like the Sensex to drop to 70,000-73,000 level.
“I have been long expecting a profit booking and I was surprised after the markets gained steam after reaching 80,000. I am very happy that correction and profit booking is happening as this is healthy and rational. We expected a 20 per cent downside and the latest downfall is hardly anything. If the markets were to go down to 70,000-73,000 level I would be very happy.
Commenting on the liquidity in the Indian stock market, the expert said even though the foreign investors had pulled out money, they pumped in Rs 34,000 crore in July 2024. They still have enough money, another Rs 34,000 crore to put in Indian markets, he said, adding that liquidity is not a problem, corporate results are also not a problem, the problem is profit booking time is here and Global cues are a bit of a problem.
Mukherjee went on to add that global problems are a shot-term kind of a thing and people take it as a knee-jerk reaction rather than long-term planning. It is not going to last for long, he noted.
Sensex, Nifty plunge today
The benchmark Sensex tanked over 2,400 points in early trade. The sharp decline in equities led to the market capitalisation of BSE-listed firms dropping by Rs 9,51,771.37 crore to Rs 4,47,65,174.76 crore (USD 5.35 trillion) during the morning trade. Nifty declined over 600 points and was trading at 24,021.90 at 12:10 pm.
(Disclaimer: Prasunjit Mukherjee is a SEBI registered stock market expert. The above-mentioned comments are his personal views.)
Stock Market fall: Sebi registered stock market expert Prasunjit Mukherjee said he would be happy to see Sensex drop to 70,000-73,000 level. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
