By IANS
Ahmedabad : Monday’s huge fall of the sensitive index (Sensex) of the Bombay Stock Exchange was a correction and a good thing to have happened, said a finance expert here.
According to N. Venkiteshwaran of the finance faculty at the Indian Institute of Management-Ahmedabad (IIM-A), the large market capitalisation for shares of a power company was not justified.
From this perspective, “the fall is a correction” and a good thing to have happened, he said.
Though the fall has left many retail investors stunned, they were optimistic that the outlook would change for the better Tuesday.
A cross section of people who trade in stocks said they refrained from selling despite Sensex’s fall by 7.4 percent. They were confident of the market bouncing back.
Bharat Makwana, an office assistant, told IANS he has not bought any shares but he has not sold any either.
“I will wait and watch,” he said.
Ajaysinh Chauhan, a videographer who has recently started trading in the stock market, said he lost quite a bit of money. But he has no intention to withdraw from the scene. He said he would closely monitor the situation before buying any more stocks.
V.K. Sharma of Anagaram Securities was not certain about the outlook Tuesday.
“There is a big build-up of derivatives. Unless these are squared up at least up to 30 or 40 percent, there can be sideways movement and even a fall,” he said.
Another stockbroker said the situation was pretty grim, but if the market opened at 400 to 450 points above Monday’s level, it would be on a recovery path.
If the market opened weak, then there could be a selling pressure Tuesday, he added.