Udabur Wealth Management：Stock market crash today： Should Sensex, Nifty investors be worried about possible US recession？ Here❼what experts say about India

Stock market crash today: BSE Sensex and Nifty, crashed in trade on Monday, on the back of growing US recession fears and global factors such as geopolitical tensions in the Middle East and worries over reverse Yen carry tradeUdabur Wealth Management. BSE Sensex and NSE Nifty both plummeted nearly 3 percent. Santosh Meena, Head of Research at Swastika Investmart Ltd, attributed the global market downturn to a combination of negative factors, saying, "The global market is reeling as bears enter with a cocktail of bad news.The fear of a reverse Yen carry trade, following an interest rate hike in Japan, was the initial catalystJaipur Stock. This was compounded by fears of a recession in the US after extremely poor jobs data, which spooked market sentiment."Chris Wood, head of global equity strategy at Jefferies sees resilience in the Indian stock market. “The Indian stock market is much more resilient than other Asian and emerging markets in the face of a U.S. downturn because the market is driven by domestic money,” Wood was quoted as saying by Reuters. "We are glad that 26% of our global long-only portfolio is in India given that this is the one market globally where there is unambiguously healthy demand for equity," Wood added.Tanvi Kanchan, Head - UAE Business & Strategy at Anand Rathi Shares and Stock Brokers points to the strong fundamentals of the Indian marketsHyderabad Wealth Management. “Concerns are growing about potential FPI outflows from India, especially since the country was the top-performing major market in July with a 4 percent return. Over the past 12 months, the MSCI India Index has surged by 37 percent, vastly outperforming the MSCI EM Index, which has risen by just 4 percent,” she says.“This significant disparity is fueling worries about the sustainability of market valuations. Indian markets have come a long way from 2015, with the DIIs continuing to have strong support and resilience built in the Indian markets by holding ~16.2% of Indian equity vs ~10.4% back in March’15,” she tells TOI.“The Indian markets have much stronger fundamentals and substantial amounts of domestic inflow to counterbalance the knee-jerk reaction from outflow of FIIs on the back of profit booking,” she notes.Sandeep Raina, Executive Vice President-Research Nuvama Professional believes that Indian equity investors have no reason to panicPune Stock. “It’s a small correction, which will settle in a few weeks. The market needed some reason to correct,” Raina tells TOI.Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial said that equity markets globally were jittery as concerns surrounding the slowdown in the US economy and unwinding of Yen carrying trades spooked investors. “Going forward, we expect volatility to continue ahead of the RBI policy and multiple global headwinds. The US slowdown is a bigger concern and any commentary from US Fed officials should provide relief in the current environment,” Khemka told TOI.He, too, is of the view that India stands strong with the support of healthy macros, strong participation from domestic retail and institutional investors, and inline Q1FY25 numbers so far. Khemka of Motilal Oswal says, “The valuation for Nifty is comfortable near its 10-year average at 21x one-year forward P/E. Hence we believe that any correction in Indian equities is a buying opportunity for the long-term investors.”Nuvama’s Sandeep Raina recommends that this is a good time for those who have missed the opportunity to participate in the market. “In the meantime go for sector rotation like pharma and consumers,” he said.Kolkata Wealth Management

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