Rallies stopped for 4 consecutive weeks, will there be a recovery or will the market fall further?

Last week did not turn out to be good for the domestic stock market. The BSE Sensex and NSE Nifty have seen losses of over 2 percent over the past week. Thus, the spectacular rally of the market, which has been going on for four consecutive weeks, has come to an end.

So much damage last week.

The Nifty fell by 2.09 percent, while the Sensex fell by 1.99 percent during the last week. Thus, the local stock market witnessed its worst week in almost five months. The market was in losses in most of the sessions during the week. On the last day, Friday, March 15, the Sensex fell 453.85 points (0.62 percent) to close at 72,643.43 points. The Nifty fell 123.30 points (0.56 percent) to 22,023.35 points.

Due to these reasons the domestic market collapsed.

Last week was bad on both domestic and foreign fronts. On the external front, declines in global markets also dampened sentiment and spurred selling. On the domestic front, midcaps and smallcaps dragged down the market. The SEBI chief’s talk of a bubble in mid-cap and small-cap prompted the market to sell. Reports of Mahadev App scam money being spent in the stock market, especially mid-cap and small-cap, also had a negative impact.

Mid cap and small cap condition

Last week turned out to be very bad for mid-cap and small-cap. While the major indices fell around 2 percent, mid-cap and small-cap losses were around 5 percent. Smallcaps saw a decline of 4.7% and midcaps fell by 5.5%. Thus, both segments recorded their worst week in the last 15 months.

These factors will decide the market movement.

Talking about the coming week, pressure on the market may remain. In the new week, the US central bank, the Federal Reserve, the Bank of England and the Bank of Japan are going to decide on interest rates. Last week, foreign investors had sold. On the domestic front, there is a lack of major events during the new week. Factors such as crude oil and dollar fluctuations can also affect the market.

Disclaimer: The information provided here is for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing. ABPLive.com never advises anyone to invest money.

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