Many times you surprise why the stock market is falling despite very good basics. Several reasons appear why short term stock market price differ from long term fundamentals. However many major reasons for the price basic difference is the expectation but there are few other reasons why a stock prices move lower even on good market news.
Today, market news sentiments are not cheerful, it can neglect stock specific like good earning or good essentials. Apart from the market specific sentiments can also impact the stock prices. A large number of investors target good results outcome to slow down their large position. They hold significant number of shares and if they plan to sell them on any given day the stock price can come down sharply and so on good market news or good result outcome, They can wind down their long position easily without much of a price damage.
As an investor you may not be ready to take the risk of investing in stock market today when you can get good pleasure of your money elsewhere without any risk. Market update is the only reason for Indian market under-performance. We see lot of money being poured out of Indian equity market but large investors and foreign investors are putting the money in risk free debt market is much more beneficial than remain invested in equity market. Even if results being reported may be very strong, point of view regarding future earnings may not be as strong and this can reduce the stock prices heavily.
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