Market reached new lows of the year, what are investors afraid of?

Market reached new lows of the year

During today’s trading, the Sensex made a new year low of 50,921.22. At the same time, Nifty has also made a new low of 15183 year, Nifty has reached new low levels of the year for the second consecutive day.

Weakness is being seen in the stock market for the sixth consecutive day today, uncertainty prevails in the market and the market is swinging between bulls and bears, most of which are dominated by bears most of the time. Stock market today amid ups and downs ( stock market) has reached new lows of the year. A little help to the market Reliance Industries and Banking Stocks (banking stocks), due to which the overall decline of the market is less than half a percent. But most of the market remains in the red mark. In such a situation, the question is arising that what are the investors afraid of and are constantly trying to get out of the market. Due to which there is a lack of trust in the market even after 6 days.

Markets at new low of the year

During today’s trading, the Sensex made a new year low of 50,921.22. At the same time, Nifty has also made a new low of 15183 year, Nifty has reached new low levels of the year for the second consecutive day. At present, the biggest decline in the market was seen in the metal and IT sector. IT and metal sector indices on Nifty also reached new lows of the year today. If experts are to be believed, fears of recession have started deepening in many large economies around the world, which has raised fears of impact on the earnings of companies earning through exports and investors are staying away from stocks where earnings are dependent on foreign markets. .

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What is the fear of investors

According to a Reuters report, due to the tough stance of central banks, there has been a fear among investors that economic growth will stop. Despite the Federal Reserve clarifying the possibility of a recession, the continuing decline in the market indicates that investors are considering the recession as a real threat. According to Reuters, the current rate hike is the biggest increase for the US since 1994. The report, quoting Mark Hefley, Chief Investment Officer of UBS Global, wrote that the central bank’s strict policies could pose a major challenge to equity markets and economies. have gone. At the same time, another expert has been quoted in the report as saying that at present the policies of central banks are in only one direction, so investors are making their investment strategies on this basis. According to him, if there is an effect in demand, then its effect will also be seen on the earnings of the companies, due to which the pressure in the stock will increase further, so investors are exiting these stocks.

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