Indian equity market has seen a stiff correction in last two weeks and there are several factors which are acting at same time to move our index down. Concerns of Global trade war and policy uncertainties by Trump administration acted as a catalyst. Political development as TDP pulled out its support from NDA government impacted investors mood adversely. The demand of special status for Andhra Pradesh was the reason behind this pull out. Loss of ruling party in By-poll election in UP and Bihar also raised a concern about the popularity of our Prime minister.
US president imposed heavy tariffs on steel and Aluminum. Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminum imported from all countries except Canada and Mexico. This created a panic in base metal segment and down fall started. India as a country is not affected much because of it but the decision of US president created a negative sentiment.
China raised a question on this step of Trump and it added fuel to the fire. Many investors expected some responsive answers from different countries which created a fear of ‘Trade war’ and all around panic in equity market happened.
US central bank concerns about raising the interest rate for three times in this year also a negative news for world market. It may also happen that central bank will be increasing the interest rate four times this year. Outcome of this event will be on 21st March.
Nifty around 10000 can see a further up move around this region. It’s a bull market correction and no bottom fishing should be done in every bounce of the market.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
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