Catch The Falling Knife During Corona Crisis
Historically, the India SENSEX reached an all-time high of 42,273.87 in January 2020. However, it lost 16,292.63 points or 38.5% since then when it recorded it its lowest value of the quarter on 23 Mar at 25,981.24. In the month of March 20, it recorded its second double-digit fall of -13.15%, after it recorded the first double-digit fall of -10.96% on 24 Oct 08. On March 20, it also recorded the other two highest falls so far from -8.18% and -7.96%. Nevertheless, the question remains whether the investor wants to catch the falling knife? For an investor, a falling knife is a sharp drop in the market. However, the bottom and the duration of the drop is not known to him. Therefore, the investor uses the falling knife with caution and does not invest in the market during a drop. A careful study of the 25 major Sensex drops since 2006 reveals a positive outlook for the investor to capitalize. He must carefully study the fall and not form a biased opinion due to the large points chang...