Will the stock market crash? Let's find out using 6-day stress test

Posted on:
Key Points

After headline equity index Nifty fell 1,420 points in just 6 trading sessions, the 5.5% correction was deep enough to revive fears of an impending stock market crash before Haryana assembly election results brought out the bulls from their hideout on Tuesday...

Going by past market trends, the broader outlook on Indian equities and the firepower of domestic investors to firewall the impact of FII selling, Nifty may surprise despite all the noise around peak valuations and geopolitical troubles...

Since Covid days, when we started noticing the trend of bear markets getting shorter, a six-day consecutive fall in Nifty typically leads to positive returns...

While on one hand, FIIs have been selling almost a billion dollars worth of Indian stocks every day apparently to buy the more lucrative Chinese equities, domestic institutional investors as well as retail investors have been comfortably buying the dip...

"While India remains exposed to the prevailing geopolitical milieu, greater dependence on domestic drivers with policy stability provide the necessary backstop and limit any potential downside in equities, giving us the conviction to remain overweight despite a relatively rich valuation," Morgan Stanley equity strategist Jonathan F Garner said.. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own..

You might be interested in

Sensex, Nifty hit record highs: Can bulls on Dalal Street keep the rally going?

28, Jun, 23

As benchmark markets hit record highs, investors just have one question in their mind: Will the dream run conitnue? Here's what market experts said.

‘India likely to be most expensive market in the world’, says Zerodha co-founder Nikhil Kamath

10, Dec, 23

India's benchmark indices closed the week with gains after a volatile session, as the Reserve Bank of India maintained status quo on key policy rates.

Enrich Money Provides Actionable Insights into Nifty 50, Bank Nifty, Nifty Futures

12, Apr, 23

India Business News: Enrich Money, a reputed Wealth Tech Company in India, has stepped in to offer free valuable insights into Nifty, Bank Nifty, and Nifty Future not only to its clients but also to the general public.

9 years of Modi govt: D-St investors richer by Rs 20 lakh crore as Nifty rises 2.5x

26, May, 23

Under the two terms of the Narendra Modi-led government, Dalal Street investors had a good time despite implementing demonetization, GST, and the COVID-19 pandemic. The Nifty 50 has doubled in value in 9 years, with foreign and domestic institutional investors pouring in a net of $49.21 billion and ₹7 lakh crore, respectively. Post-pandemic, Indian equity markets increased significantly, making it one of the best-performing emerging markets in the MSCI index. The IT sector gave the best returns to the investors, followed by the financial services and FMCG sectors. Investors remain bullish on India due to its positive macro side improvement and stability.

Nifty to extend gains or fall under 17,700? Check 8 key things to know before share market opens on 25 April

25, Apr, 23

Despite Asian markets trading in red and a mixed end for Wall Street, the SGX Nifty is hinting at a positive start for domestic indices Nifty and Sensex. Here are 8 key things to know before the share market opens on Tuesday.

ETMarkets Survey: Sensex seen above 65,000 by Dec-end on sustained capital flows

30, Jun, 23

Indian equities have performed well in the first half of 2023, reaching all-time highs, and money managers are optimistic about the market's prospects for the rest of the year. According to a survey, 86% of brokerages expect the benchmark Nifty 50 to be above 19,000 by December, and 79% believe the Sensex will surpass 65,000. Foreign and domestic fund flows are also expected to sustain, driven by strong corporate earnings and attractive growth potential. However, volatility may persist due to global interest rate hikes and geopolitical risks. The automobile, FMCG, and realty sectors are expected to continue gaining momentum in the second half of the year, while banking stocks are expected to rebound. Midcap and smallcap stocks are also expected to perform well, outperforming benchmark indices.

GIFT Nifty up 40 points; here's the trading setup for today's session

28, Feb, 24

Overall we expect the market to trade in range with positive bias. Globally investors would watch out for US & Europe Consumer Confidence Data, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.

Sensex, Nifty at record high. Time to be greedy or fearful ahead of Q1 test?

30, Jun, 23

Foreign institutional investors (FIIs) have invested $10 billion in Indian equities in the first quarter of FY24, leading to a rally in the stock market. Analysts believe that India is a preferred destination for investors looking for alternatives to China. The participation in the rally has been broad-based, with mid and smallcaps outperforming. With reasonable valuations, the Nifty index is expected to rally further and may reach 21,000. Encouraging progress of monsoons and a rate pause by the RBI are also boosting market sentiments. However, global geopolitical tensions and negative surprises in Q1 earnings could impact the market.

Nifty to rise or sink below 18500? See SGX Nifty, FII data, US shares, more things to know before market opens

12, Jun, 23

The SGX Nifty hinted at a positive start for Indian benchmark indices Nifty 50 and Sensex. Here's a look at the key things to know before the share market opens on Monday.

Passive money may form bulk of flows into Indian equities in CY23

21, Jun, 23

The large passive flows into India by FPI investors and Indian equities by domestic investors would suggest expectations of decent returns (expected returns) among passive investors, it said.