New Delhi: The Indian Stock market on Thursday fell drastically in early trade with similar trends in global markets. Sensex dropped as much as 1,037.36 points and the Nifty50 hit 10,138.60 level, 321.5 points below its previous close.
The Newsroom Post spoke to Gaurang Shah (Head-Investment Strategist, Geojit Financial Services), and he explained the causes behind the continuous drop in the Indian stock market.
Below is the clip of conversation with him
Shah’s take on the impact of sell-off in US markets
On the question of what is the impact of sell of in US market on the Indian market, Gaurang Shah said that he does not agree with this as fall in stock market is country specific.
It is more country specific, he said. We have been correcting much earlier than other markets correcting. Global factors should not impact too much it is local factors are responsible.
On Trump’s statement
He also disagreed with US President Donald Trump statement that stock market sell-off was a correction that was long awaited, and that the Federal Reserve, which has been raising interest rates, has gone “crazy”.
“We have been correcting much earlier than other markets correcting. Global factors should not impact too much it is local factors are responsible,” explained Shah.
On the question of how does the fall in rupee is affecting the Indian stock market, Shah explained that fall in rupee will cause the government fiscal deficit goes out of the window, crude oil imports become expensive.
Which stocks should investors buy?
On the question of possibility in improvement in Sensex, he sounded very optimistic and advised that people should buy mid-cap stocks.