Share Market News / How will the market move from Monday? Will the decline continue or will the boom return?

Share Market News: Last week, the stock market declined every day, causing investors to lose lakhs of crores of rupees. In the last eight trading sessions, the BSE Sensex fell 2,644.6 points or 3.36 percent, while the Nifty fell 810 points or 3.41 percent. This continuous decline has left investors confused whether the market will improve in the coming week or the decline will continue.

What will be the next direction of the market?

Experts believe that now the direction of the market will be decided by global signals and the activities of foreign portfolio investors (FPIs). Weak quarterly results, fear of global trade war and continuous withdrawal of foreign funds have created a negative sentiment in the market. On Friday, the Sensex and Nifty closed with a decline for the eighth consecutive trading session.

Impact of US trade policy

Siddharth Khemka, Head-Research, Asset Management, Motilal Oswal Financial Services Limited, said that after the quarterly results season is over, the market will now be eyeing US President Donald Trump's trade policies and global developments. Apart from this, the movement of rupee against the dollar and Brent crude oil prices will also affect the market sentiment.

Religare Broking Limited Senior Vice President-Research Ajit Mishra said that now there will be a special focus on FPI inflows and currency fluctuations. Also, US tariffs and its impact on global trade cannot be ignored.

Main reasons for decline

There are several major reasons behind this decline:

US trade policy: President Trump's announcement of imposing high tariffs on trading partner countries has increased volatility in the market.

Weak quarterly results: The results of many companies did not meet the expectations of investors, due to which negativity remained in the market.

Withdrawal of foreign investors: Foreign portfolio investors continuously withdrew capital from the market, increasing the selling pressure.

Impact of global signals: The meeting of the US Federal Open Market Committee (FOMC) and global economic conditions also affected the market sentiment.

What should be the strategy for investors?

Experts suggest that investors need to be cautious at this time. They should adopt a long-term investment strategy and invest in companies with strong fundamentals. Due to market volatility, the risk in short-term investments will remain high.

The direction of the market in the coming weeks will depend on global cues, foreign investor activities and economic policies. Investors are advised to avoid taking hasty decisions and maintain balance in their portfolio.