Have you ever heard about Navratna companies? These are unique companies in India whose work is very significant to India. Advice for them is universal and they are all very good corporate constituents. However, there are those times when even big companies have trouble in the stock market!
The Big Order!
Recently, one big Navratna company got a huge order. Specifically, the company’s got a new project that makes them a lot of money. Typically, when a company receives a large order its share price increases because investors feel good. They think the company will make more profit in the future.
But Why Did the Shares Crash?
Even though the company got a big order, something unexpected happened the share price went down! Investors were shocked. Here are some possible reasons:
Market Fear At times, investors become fearful of the economy [i.e., they experience negative expectations] and begin to liquidate their holdings. Company Debt If a company has too much loan to pay back, people might not trust it even if it gets a big order. Revenue Not Immediate It does not follow that, just because a firm takes an order, it will automatically generate revenue. It takes time. Big Investors Selling Shares If big investors sell their shares, the price goes down, and other people start selling too.
What Should Investors Do Now?
If you invested in this Navratna enterprise, do not panic. Here are some simple things to remember: Verify Company Strength See if the company remains healthy and profitable. Long-term: Shares are always fluctuating up and down, but sound companies tend to bounce back. Ask Experts If you don’t understand, take advice from experts or platforms like Angle One to make smart decisions.
I would recommend Angel One as your trading platform. It enables trading and buying and selling of equities. Their privacy protection is guaranteed at all times. Click here to open an account.
Navratna companies are very important for India. They operate in domains such as power, petroleum, steel, and construction. If they do okay, India’s economy starts to recover and people get work. Indeed, although their stock prices may go low occasionally, they tend to come back up again.
Conclusion
Stock prices do not always move as expected. Despite having a great order, a company’s shares may decline. Investors should be patient and have a long-term perspective before embarking on decisions. If you are unsure, always take expert advice!
Disclaimer
This article is provided for information and use only and does not constitute financial advice. The stock market is risky and share prices can go up and down. Never invest without research or seek advice from a professional.