Share Market Updates: How should investors react to the big action in the stock market? Know expert opinion
Invest Aaj Kal’s founder Anant Ladha said that the decision on the interest rate by the US Federal Reserve will not have much impact on the market. If the market declines, then investors can do a SIP top-up.
This week the stock market (Share Market Updates) is going to be very important. The country’s largest IPO (LIC IPO) will open for investors on May 4. Apart from this, on May 4, an announcement can be made by the US Federal Reserve regarding the interest rate. There is a possibility of an increase of at least 0.50 percent. Foreign investor sentiment is still weak. In April, FPIs withdrew a total of 17144 crores from the Indian stock market. So far this year 1.39 lakh crores have been withdrawn from the Indian market. Amidst all these factors, investors (Share Market InvestorsWhat strategy one should proceed with is important. Let’s take a look at Invest Aaj Kal’s founder Anant Ladha (Anant Ladha) Understand what tips are being given to investors.
Anant says that Federal Reserve chief Jerome Powell has already indicated that the interest rate may be increased by 50 basis points in May. The market has already been quite correct and the reaction to this action has also been seen. The federal announcement will not have much negative effect on the market. If the US Federal Reserve hikes the interest rate by 75 basis points or 0.75 percent, the sentiment could weaken further. After this, there is a possibility of a big fall in the market. After increasing the interest rate of the Federal Reserve, the Reserve Bank will also be under pressure to increase the interest rate. In the April meeting, RBI has already said that now its focus is on inflation instead of growth.
Do SIP Top-up on Correction
Long-term investors need not panic. If more correction comes in the market then this can be seen as an opportunity. Shop in the fall. If you are a mutual fund investor then you can top-up SIP. It has been advised to buy more and more units every fall.
Keep traders' volume low
If you are a trader or a short-term investor, then Anant advises avoiding an aggressive approach. Volatility will definitely have an impact on traders and short-term investors. So focus on quantity. If you trade in less quantity then the loss will also be less. There is every possibility of volatility in the market for the next few months.
Two big events this week
This week is important for the market as two big events are going to happen. LIC IPO is opening on 4th May. On the same day, the Federal Reserve can announce to increase in the interest rate. On May 5, the Bank of England can also take a decision regarding the interest rate. The stock markets will remain closed on Tuesday, May 3, on the occasion of Eid-ul-Fitr.