Systematic withdrawal plans in equity funds can spell trouble in a falling market, points out Deepesh Raghaw.
Analysts attribute this volatility to selling by FPIs and FIIs.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
The Sensex posted its biggest single-day jump in over a decade at 1,921 points and investors' wealth soared by a staggering Rs 6.8 lakh crore after Finance Minister Nirmala Sitharaman delivered a surprise cut in corporate tax rates on Friday.
2019 appears a story of two halves for Indian equities - a more difficult first half might precede a stronger second half, said Abhiram Eleswarapu, bottom, left, Head of India Equity Research, BNP Paribas in an interview with Ashley Coutinho.
With the results season kicking off next week and the undertone still weak, investors should be careful. The trend is likely to remain lacklustre ahead of Infosys results. The market may remain range-bound and choppy depending on global cues.
Focus will, however, shift back to corporate earnings, liquidity situation and global events - specially crude price.
The proposal to increase public float, hike income tax surcharge, move to tax share buybacks and lack of stimulus to shore up economic growth has hurt investor sentiment.
In the Sensex pack, index heavyweight Reliance Industries fell 2.84 per cent to Rs 1,057.15 after reports that the company's oil assets may take a hit due to the government's imposition of cost controls on soaring petrol and diesel prices.
It is impossible for anyone to explain how markets are hitting record highs during an economic recession. It is both mysterious and surreal, notes Debashis Basu.
Consistent move on the Nifty could lead to increased volatility in the market.
The 30-share S&P BSE Sensex ended up 130 points at 25,400 and the Nifty50 rose 46 points to close at 7,759.
The Nifty's put-call ratios are very bearish.
The 30-share Sensex ended down 12 points at 25,610.
The breadth, indicating the overall health of the market, turned negative from positive
The NSE Nifty too recovered over 100 points, or 0.96 per cent, to end at 10,576.85.
'The government's projections for 2019-2020 will be disappointing big time.'
Long-term investors should consider moving into smaller stocks. Rather than try to pick stocks, it makes sense to build a diversified portfolio by exposure across midcap and small caps funds, suggests Devangshu Datta.
'It was because of the huge selloff in the Indian equities that the rupee fell so sharply against the dollar on Friday.'
The Nifty is up 6.5% in the last 12 months. The NSE IT Index is down 10% in the same period. But will the sentiment improve going ahead?
The biggest gainers in the Sensex pack in Friday's session were Yes Bank, Bharti Airtel, Tata Motors, Vedanta, SBI and Axis Bank, spurting up to 3.05 per cent. The losers included HCL Tech, TCS, Infosys, Hero MotoCorp, IndusInd Bank and Sun Pharma, falling up to 1.55 per cent.
Yes Bank gained the most, spurting 5.94 per cent. Bajaj Finance, Hero MotoCorp, TCS, HUL, Bajaj Auto, HCL Tech, Infosys, SBI, M&M, ICICI Bank and Tata Motors rose up to 1.65 per cent.
'Historically, the lead-up to a general election tends to be excessively volatile and big losses are perfectly possible.'
A weak economy coupled with rising Covid-19 cases and inflation that is above RBI's comfort zone, geopolitical developments, and upcoming India Inc's second quarter results for FY21 could impact sentiment, analysts say.
The broader NSE Nifty gained 22 points to 10,480.60
Given the developments, analysts do not foresee a quick recovery.
UBS reiterated its Nifty target of 9,200 by December as it expects growth to gather steam
The 50-issue NSE Nifty in range-bound movements settled higher by 59.15 points, or 0.58 per cent, at 10,252.10.
The rupee may also gain against the euro but be prepared for a snapback in the euro as Greece resolves.
The return from the ETF investment will be more than the 8.75 per cent the EPFO offers to subscribers now.
In the metal pack, Tata Steel was up 3.7% while Vedanta was up 1.8% .
The broader 50-issue NSE Nifty dropped 38.35 points, or 0.38 per cent, to close at 10,186.60
FIIs continue to invest in India, with their net investment since September 2013 standing at about Rs 82,000 crore(Rs 820 billion)
A fall presents an opportunity to buy rate-sensitive stocks.
At the close, the 50-share NSE Nifty was at 8,611.15, up 19.90 points, or 0.23 per cent, after moving between 8,637.15 and 8,555.20.
'The only thing that is safe right now are government securities.'
The BSE Sensex and Nifty fell more than 2 per cent on Tuesday, heading for their biggest daily loss since the midst of the rupee crisis in 2013
Market participants are wary of wild swings expected in stocks on May 16 - the poll results day, and therefore refraining from taking leveraged bets now, say analysts
The NSE Nifty cracked below the 10,800-mark to hit a low of 10,753.05 intra-day, before closing at 10,762.45 with a loss of 59.40 points, or 0.55 per cent.
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In an hour-long chat on rediff.com on Friday, A K Prabhakar, senior VP and Head -- Equity Research (Retail), Anand Rathi Financial Services Ltd, discussed the best stocks to put the investors' money in.
