Bloodbath on the Street as indices drop 3% each: Here’s what experts have to say

(Image: Reuters)

Indian benchmark equity indices continued their southwards march on January 24 for the fifth straight session amid a largely negative trend in global markets. Further, unabated foreign fund outflows also put pressure on domestic equities.

The five days of heavy losses have wiped out more than Rs 17.54 trillion of investors' wealth. Since 17 January, the BSE Sensex has declined over 3,300 points, while Nifty has lost over 1,100 points. Both indexes have declined more than 6% since scaling all-time highs in October.

Investors now look forward to this week’s Federal Reserve meeting where the US central bank is expected to confirm it would soon start draining the massive lake of liquidity that has boosted growth stocks in recent years.

“Markets looking week...broad markets are weaker than nifty. Looks like a strong liquidation, which might throw up opportunities,” said Deepak Shenoy, Founder Capital Mind.

Markets looking week...broad markets are weaker than nifty. Looks like a strong liquidation, which might throw up opportunities.

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— Deepak Shenoy (@deepakshenoy) January 24, 2022

“As the valuations of loss making companies come down, their ability to raise capital to fund these losses will also reduce. This will force them to cut down their loss making growth which will lead to a further decline in valuations,” said Sandip Sabharwal, Investment advisor and research analyst.

As the valuations of loss making companies come down Their ability to raise capital to fund these losses will also reduce This will force them to cut down their loss making growth Which will lead to a further decline in valuations — sandip sabharwal (@sandipsabharwal) January 24, 2022

“Is this 2008 or Dot Com 2.0 ? I dont know. I still think , it will be the Roaring 20s, this is a healthy correction in a long term Bull market. Huge pockets of Excess are Deservedly getting Deflated. Fed's Triple Whammy is Unnerving Risk Sentiment. Best to Hold on Hard,” tweeted market expert Ajay Bagga.

Is this 2008 or Dot Com 2.0 ? I dont know. I still think , it will be the Roaring 20s, this is a healthy correction in a long term Bull market. Huge pockets of Excess are Deservedly getting Deflated. Fed's Triple Whammy is Unnerving Risk Sentiment. Best to Hold on Hard .

— Ajay Bagga (@Ajay_Bagga) January 22, 2022

“If we improve our down fall today, which I think we should, it should be treated as a gain. Frankly this does look overdone across some sectors,” tweeted Safir Anand.

If we improve our down fall today, which I think we should, it should be treated as a gain. Frankly this does look overdone across some sectors — Safir (@safiranand) January 24, 2022