Turmoil and volatility in world share market
Retail investors shocked and upset
The world economic slowdown due to Corona virus is increasing in a rapid pace.
Hence, the stock markets of the world have also been hit hard.
Surprisingly, all business activities in India have been stalled for almost two months.
Yet the market is not falling as per estimation. Share market experts are also worried what is going on. Is something fishy?.
In the recommendation, some market experts predicted that the Nifty should fall to 7500 level.
But on the contrary, the Nifty has been swinging between 9000 and 9800 level in the stock market.
Due to Corona virus, there is an atmosphere of fear everywhere. The purchasing power of people is continuously decreasing in the market.
So there is no boom in the market except for the food items and the demand is very low.
The common investor does not even have the money to invest in the stock market.
In the time of financial crisis most investors are focusing on saving money. Even some bear investors are waiting for the share market to fall.
Due to this, there is fierce selling and volatility in share market and both bear and bull playing a wait and watch game.
However, the bulls have kept their grip in the market and the market is not falling very fast. So the game is on between bears and bulls operators.
This is beyond the thinking of the common investor.
The share market is a big part of the economy of any country and the eyes of investors from all over the world are on it.
Therefore, the government and the RBI are also giving a momentum to the economy by bringing economic packages from time to time.
And to a large extent the market has avoided a lot of ups and downs even in these economics slowdown and corona lockdown.
But no one knows how long this will be possible.
The RBI has given permission to all to defer the paying of bank installments for 3 months.
But most of the sectors are suffering a huge economic loss due to the closure of Corona for the last two months.
Which will not go away soon and its far-reaching effects will be seen.
Many people are saying that at the present time the share market is being run by the Mutual Fund House.
They are creating a boom in the share market by selling heavily and want to trap the retail investor.
But due to Corona virus, a large number of people have lost their jobs or are not getting their salary on time.
Hence the investment in share market and mutual fund has reduced very much.
People are getting their mutual funds redeemed for money.
Because there is an atmosphere of fear that the world is moving towards a severe economic recession.
Recently Franklin Templeton Mutual Fund closed its six debt mutual fund as people started withdrawing huge amounts due to Corona virus and recession fear.
Anyway, the returns of the mutual fund are almost in minus from the last three years.
Due to the corona virus, the trust of the people on the mutual fund has further reduced and they do not feel safe to invest.
Currently, only foreign investors and operators are running the market.
The retail investor has already lost a lot of investment in this decline and is currently maintaining a safe distance from the share market.
American share market, which affects all the stock markets of the world, currently not much volatile and balanced & managed to a great extent.
The Fed is also constantly trying to save banks, share markets and small businesses in America by providing economic relief package.
Because the economic condition in America is bad, due to Corona virus about 1.6 million people are infected and about 99,000 people have died.
20 million people have become unemployed due to COVID-19. It all depends on the unemployment allowance given by the government. All small and big businesses are closed.
The speed of all vehicles and aircraft has almost stopped. People do not have money to invest in share market. But still the stock market is not falling fast, which is surprising.
The US has a presidential election in November 2020.
In the meantime, Donald Trump will not want to go down the stock market or the economy.
But it has to be seen how long they control it in these odd circumstances.
What is its impact on the Indian stock market and what will be the impact on retail investors.