This Diwali Onwards Expect More Fireworks From The Stock Market

Stay away from the volatile bourses, avoid value picking as markets are yet to hit bottom, but keep an eye on it.

- Yagnesh Kansara

While you will be reading this story, scores of people including you will be wishing others “Happy Diwali and a prosperous New Year”. However, looking at the current state of the stock markets, which have turned hyper-volatile, and with more trying times ahead, even I am uncertain about greeting people a “prosperous New Year”.

There is an age-old practice at the Indian bourses to hold a special trading session on the Diwali evening called the “Muhurat Trading” which is on November 7 this time. Brokers generally undertake and execute token orders on behalf of their clients including financial institutions. Market observers say, this time, it will be interesting to watch how this session ends, when the stock markets are going through turbulent times.

After peaking at the end of August 2018, the benchmark indices began witnessing correction and till date (October 23, 2018) have corrected more than 15 per cent from its peak value. The moot question that has gripped everyone associated with the market is, how the bourses are expected to behave during next three quarters, as the general elections and its results are due in June 2019. We spoke to various market participants, experts and observers to know their views on the matter as well as what investment strategies the investors should adopt, when the stock markets are expected to remain turbulent and how to keep their hard earned capital safe, secured and intact.