One year revolving return for the Indian stock market, an important indicator that is believed to be used by retail investors while making investment decisions, has changed negatively for the first time this year because the sale of Dalal Street has increased.

Returns one year NIFTY50, NIFTY MIDCAP 100, and NIFTY 500 are now negative 1-1.5 percent. One year’s roll return for the Nifty Smallcap 100 index is now 11.2 percent negative.

Growing fears that the movement of the central bank to tame multi-degraded inflation can trigger a slowdown and global recession in several main economies has caused sharp sales in risk assets such as equity and cryptocurrency in 2022.

Benchmark nifty is 5 percent of confirming the first bear market in two years, while the good Midcap 100 and Nifty Smallcap 100 index has entered the bear market area.

Analysts are worried that with a one -year return on equity negative changes, retail investment momentum can slow down drastically in the coming months, mainly because the level of deposit will continue to increase again.

“In our view, a combination of low returns from the market (if the market remains flat or declined) and a higher fixed deposit rate for the next few months can shake the belief of retail investors in equity,” the company brokerage company institutional equity box said in the new record this.

It is said that retail investors have ignored high assessments and new price corrections because their return expectations are “anchored” in historical returns.

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The one -year return criteria is considered the most commonly used by retail investors, who have bought NET more than Lakh Crore Local Hospital in the last 18 months, for their investment decisions.

Before the ongoing correction began in October 2021, retail investors enthusiastically bought every decline, given that the market would end higher with a fairly rotating liquidity.

However, the strategy of “buy-the-dip” has failed because the benchmark index has failed to make the highest new since October 2021 amid an increase in interest rates, geopolitical crisis and tighten global liquidity.

Shift to security

Market experts believe that retail investors can switch to less stable investment options such as high ranking and real estate bonds.

Portfolio managers say that tall individuals have begun to move funds to debt and real estate because of expectations of returns from shrinking equity.

There will be a slowdown in new capital from retail investors who step forward as shown in pain and because there will be a psychological impact of negative returns from the last seven months,” said a portfolio manager based in Mumbai with anonymity conditions.