Stock Market Best Days :There is a downward trend going on in the stock market these days. Sensex has fallen by 11 percent from its peak and Nifty by 12 percent. In such a situation, investors are justified in being afraid. A prolonged fall in the market becomes the easiest reason for investors to sell equities. But is this strategy right? Should investors be alert and sell their shares when such a correction comes in the market? If we look at the historical returns of the market and its record of bouncing back from declines, then this strategy can be a huge mistake.
Hyundai Motor India: A new player in the market can give 24% returns, if you missed the IPO then now is your chance to invest at a discount.
Best days come in every phase of the market
FundsIndia Research report suggests that investors should wait for the best days of the market instead of panicking in such an environment. According to the report, since 1995, there have been many such phases, such as global recession, Covid 19, global rate hike sell off or uncertainties regarding elections. But even during this period, the market has seen some great days, in which the market has given high returns. Due to these good days, the long term returns of the market have been good every time after such a phase. According to the report, if we talk about the last 20 years, the returns of investors who missed the best 10 days of the market were less than half.
Buy SBI: This PSU banking stock can give 30% returns, many big brokerage houses are interested in SBI.
Impact on returns due to missing best day
FundsIndia Research report has given information about the impact on returns due to missing the best day from 1995 to 2024, i.e. over a period of more than 19 years. Here the return on investment of Rs 10 lakh in Nifty 50 TRI from 2005 to 2024 YTD has been calculated.
Lakshya SIP: Opportunity for regular monthly income along with wealth creation, best combination of SIP and SWP, special scheme of Baroda BNP Paribas MF.
How much did you get in exchange for Rs 10 lakh
Remained in the market the entire time: Rs 1.46 crore (14.5% annually)
Best 5 days of the market missed: Rs 94 lakh (11.9% annually)
Best 10 days of the market missed: Rs 69 lakh (10.2% annually)
Best 15 days of the market missed: Rs 52 lakh (8.7% annually)
Best 20 days of the market missed: Rs 40 lakh (7.3% annually)
Best 25 days of market missed: Rs 32 lakh (6.0% p.a.)
Market’s best 30 days missed: Rs 25 lakh (4.8% p.a.)
Best 40 days of market missed: Rs 17 lakh (2.7% annually)
Market’s best missed 50 days: Rs 12 lakh (0.8% p.a.)
Best day even in bad times
2006: FII & DII – Heavy selloff
Market decline: 30 percent
Best Days: June 15, 2006 (6.3% YoY), June 9, 2006 (5.2% YoY), June 30, 2006 (4.4% YoY)
2006: Global Financial Crisis
Market decline: 60 percent
Best Days: May 18, 2009 (17.7% YoY), October 31, 2008 (7.0% YoY), January 25, 2008 (7.0% YoY), October 13, 2008 (6.4% YoY)
2020: Covid 19 pandemic
Market decline: 40 percent
Best Days: April 7, 2020 (8.8% YoY), March 25, 2020 (6.6% YoY), March 20, 2020 (5.8% YoY)
You can get high return of 42% by buying LIC shares, price can increase from Rs 915 to Rs 1300.
How big is the current decline?
Talking about the recent fall, the Sensex has fallen by 11 percent or 8398 points from its peak level of 85978.25 to the level of 77,580.31. Whereas Nifty has fallen by 12 percent or 2745 points from its peak level of 26277.35 to the level of 23,532.70.
