Indian stock market is not the same as investors think it was back in 2016–2017. It has became a “sell on rise” proposition due to multiple decisions taken by the government.
- Levying LTCG gave a loss of confidence for holding stocks for longer duration.
- Due to demonetization good thing is black money is gone but lot of growth of aspects of economy is crippled and we are seeing after-effects of it.
- Improper role out of GST hampered many business and their revenues
- Government is basically dumping public money to PSB by recapitalization which has also failed miserably.
- Forced and fast transition from BS4 to BS6. Consumer are delaying buying automobiles. And now for EV vechicles which government want to be fully done by 2024 without any EV infrastructure.
- Lately, lot of scams and fraud (PMC, PNB) have decreased the confidence of investors.
These all problems cannot be solved in 1 day by just corporate tax. On 22–24 sep 19, a sudden jump in indicies was basically a technical pulback and due to short covering.
Finally recovery will not be in 1 day and it will take time. Best thing is to buy quality stock and sit tight, invest 5–10% on every good dip and don’t try to burn hands with garbage stocks.