2024-03-14 06:32:14
New Delhi: There is a boom in the stock market today. The market is trading at the level of 73,837 with a jump of 330 points around 2 pm. Whereas Nifty is trading at the level of 22,386.40 with a jump of 50 points. There is a rise in the market since morning. There has been a surge in the market due to buying by foreign investors and buying in big stocks like HDFC, ICICI Bank. Among Sensex companies, good buying is being seen in TCS, HDFC Bank, Reliance Industries, Axis Bank, ICICI Bank, IndusInd Bank, Infosys, Larsen & Toubro and Bharti Airtel. Earlier yesterday i.e. on Monday, there was a decline in the stock market. If we look at the stock market in the past years, there has been a decline most of the time in the month of March. The risk of a fall is higher in the month of March compared to the other months of the year. According to reports, if we look at the data of the last 23 years, the stock market has given negative returns in 56 percent of the cases. There are many reasons for the market falling in March. Let us tell you why there is a greater risk of a fall in the stock market in March.Gold silver price today: Record jump in gold prices, price reached all time high, you will be stunned to see the price
This is why the market falls
There are many reasons for the decline in the stock market in March. According to experts, the last date for filing advance tax is in March. In such a situation, companies need cash to pay taxes. Companies sell mutual funds and stocks to raise cash. At the same time, companies also keep an eye on losses and profits in the month of March. The company compensates its long term losses through capital gains. This also reduces their tax liability. This also increases the possibility of market decline. In the month of March, the market has given much less returns as compared to the rest of the months of the year. Nifty 50 has given a return of 0.32 percent in the year 2023, 4.33 percent in 2022, 1.11 percent in 2021 and 23.25 percent in the year 2020. According to market experts, before investing in any share in the month of March, you should definitely talk to your financial advisor. During this time, one should invest in the market very thoughtfully. The possibility of a market decline in March is greater than in the other months of the year.
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Companies need cash
According to media reports, companies want to show maximum cash in the closing month of this financial year. Companies show profits in cash by selling their equity shares. This strengthens the balance sheet. At the same time, the position becomes stronger for the next financial year also. The focus of companies is on removing cash from the balance sheet by replacing riskier assets like equity.