Stock Markets could see gains from next week - Expert Ajay Bagga tells Anil Singhvi; lauds SC decision on loan moratorium
The Stock Markets have achieved their targets by the first half of January and February months, so the current consolidation is justified, Market Expert Ajay Bagga tells Zee Business Managing Editor Anil Singhvi. The markets have fallen in terms of prices too, he added. The Stock Markets are expected to rise from here from the next week onwards
The Stock Markets have achieved their targets by the first half of January and February months, so the current consolidation is justified, Market Expert Ajay Bagga tells Zee Business Managing Editor Anil Singhvi. The markets have fallen in terms of prices too, he added. The Stock Markets are expected to rise from here from the next week onwards.
The reason behind this optimism was the continuation of inflows. In the US Stock Markets, around USD 56 billion was invested in Mutual Funds. This was because of the USD 1400 stimulus that went into every citizen's accounts in the US, Bagga said. Out of the 280 million people who were to benefit from this, 100 million have already received this amount.
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Dow fell by 300 points to end at lower levels on Tuesday while Nasdaq fell by over 1 per cent. The jump in Nasdaq has been seen because of the Robinhood investors coming back to the markets.
On the impact of Supreme Court’s decision regarding the loan moratorium, where the SC has ruled that the banks cannot collect interest on interest, Bagga said that the ruling was good and should have been taken much before.
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The apex court has given clarity and said that no new petitions will be taken on this. The top court has said that it will not jump into policy making and only rule on the legal standing of the policy, Bagga said.
The SC has allowed the government and RBI to take decisions pertaining to this, which is a positive step, Bagga said. Bank Nifty gained on Tuesday on the back of relief that no new moratorium would come, he said.
On investments by domestic funds, Bagga said that the investments will start only when the domestic funds have net inflows. He said that the direct money is also coming into the stock markets as around 1 cr new trading accounts were opened last year. Younger Generation is investing in Mutual Funds, he said.
Also, March is usually tight, and things ease out from April, he further said. FII flows have been good in October to December quarter. Even January and March months were good, he said.
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