Why Stock Market is Going Up – Stock Market Latest News | Nifty | Sensex

If we talk about Nifty then in the recent times, it has gone up a lot If we talk about just the past 5 trading sessions Then in the past 5 trading sessions, Nifty has gone up 7.5% There, if I talk about sensex, then the sensex almost Went up by around 7.2% But what was the reason bheind the market and the sensex going up And as an investor, in a turbulent time like this When the market flucutates so much How should you plan your investment strategy How you can take your investment long term and make a good return Let us talk about that today I, Jagdeep Singh, welcome you to the Groww channel Let us start today's video So if we talk about why the market is going up For us to understand that it is us to understand why the market went down in the first place So whenever an unknown thing comes that the market does not know about Before it comes itself, the market discounts it from its price Now you must be thinking what I am talk about So now consider that the market used to trade at 12,400 at one time some time ago But after that came the Coronavirus But until people found out about the Coronavirus Before that itself the market went down a lot When the lockdown in India began, before that itself the market touched the level of 8000 Because at that time everyone knew that because the lockdown has happened Because of that all the economic activities are going to stop If all the economic activities stop completely Then the demand driven economies where all sales take place because of demand Where the economic activities are, that will stop completely Like what happened in India's case And before that it was also expected that this lockdown Will be extended many times Will go on for some time, it won't end in 20 days Because of which the market made a lot of discounts All the events in their price So we also got to see a bad impact, that many industries were very negatively impacted In this if I talk about a few industries Like airlines, hospitality There are many industries apart from this Which are directly associated with tourism They were were badly negatively impacted And apart from that there were many industries that were impacted And there was a negativity in the entire economy Because of which the market started discounting all the information And the market started to come down Now if we talk about nifty, and when there is a lot of volatility in nifty There are two types of people that trade in the nifty First the companies and the investors in the, They come and invest their money And invest their money for the long term horizon The second kind of people are traders That trade in large volumes on a daily basis And the new information that comes on the daily basis Based on that they come and trade in the market And when the market becomes volatile, in one way it becomes very trader driven When traders come and trade in heavy volumes And as we got to see in the recent day, there was a lot of volatility because of trading And the market used to go up and down a lot After this we will talk about, whenever there is a lot of movement in the nifty, in one way It impacts what is happening in the world market And you know that not only did the Coronavirus impact India But it impacted the whole world Because of which the economy of all the developed economies of world came on a hold Because of which their index Even they were impacted negatively Like if we talk about tghe index of the US, Dow jones At one time, it came below 20,000 But it has started making a recovery again And after that when we look at the reopening taking place in the US We got to see a good recovery in Dow Jones After this if I talk about crude, then at one time even crude came down a lot Because people thought there was a lot of problems in demand right now But as soon as the economy restarted Even the price of crude started to stabilize, because of which the traders that were betting
on the market to come down They started to change their positions Because of which we also saw an effect on the Indian market And after this if we talk about the recent event that impacted the Nifty a lot That was reopening As you know a few days ago there was a lockdown and people thought that it would go on for quite some time But after that the news came out that from June 1 Unlock 1 would be started in India Because of which many restrictions until now They have been removed And there the market has felt that the economic activity That came to a hold at one time Now it has restarted After this if we talk about the government, then whenever in the economy There is a problem of demand, then the government tries in different ways For the demand to be revived in that country Like if we look in India's case India many times gave a stimulus package And tried that in the MSME sector, apart from this the farming sector And if we talk about the big industries It tried to give something to every industry So that the liquidity concerns from there can be removed Apart from this you also know that there has been a moratorium on EMIs So that people won't have problems and the liquidity concerns don't increase in the country And after this when the news of the unlock one came, then market started to feel that The economic activity can come back Because of which the market started to go up So if we look fundamentally, then fundamentally nothing much has changed Until now in any company's fundamentals And apart from this we also get to see that the lockdown that took place until now The effect of that can be seen in the financials of many companies That will come after the results of Q2 After this if we talk about some other news, then Moody's has For the first time in 20 years, downgraded India's rating So amidst this news, the market is very volatile But yes, in the recent days the market has given good returns If I talk about the past 5 days, then the nifty has gone up 7% So at this time the market is very volatile and new driven At this time, I would like to give investor some advice At this time, you should not trade Because if you don't trade and you are very new investors Then your chances to lose money in a market like this increases a lot So how should you take the investment decision here So whenever the market is volatile like this If you have to take an investment decision at this time It is very important for you not to invest all your money at once Because the market is very volatile And at this time, SIP would be the best option for you If you want to invest in mutual funds If you want to invest in stocks For that it is very important for you to choose a stock and keep And if you have Rs 100 Pick 10% at a time and put it in stocks So pay a lot of attention to diversification here Because it is very important for you to have a diversified portfolio at this time All your money should not be in just 2-3 stocks So pay a lot of attention to diversification here Apart from this if you want to invest your money Do not invest all your money at once If you invest all your money at once It can be a very big mistake at this time Keep an emergency fund of all your money After that if you have the money left to invest It can be a good time to make an investment Invest your money in small chunks Small chunks means, invest 8-10% Invest 10% again in 2-3 days So that you can get the benefit of average price You should also see at this time to choose fundamentally strong company That have good cash reserves That don't have a lot of debt problems So if you pay attention to these things You can make a good investment strategy and make a good return in the coming time as well So we got this video just for educational purposes that had only one objective So that we could tell you that when the market is very volatile Diversification is very important at that time SIPs are very important then It is very important for you to not invest all your money at once But in small chunks and in fundamentally strong companies And at this time, if you are a new trader and if you haven't traded before And you feel that you should trade Here the chances of you losing your money increases a lot Invest for the longer horizon, find a good stock and make good returns in the coming time If you liked this video, press the like button Comment down below and let us know what your favourite stocks are that your are planning on investing in If you haven't subscribed to the Groww channel yet Then please subscribe to our channel Because we put up 3-4 videos every week on this channel for educational purposes Which can help a lot for your to become a good and intelligent investor Happy investing!