Hi, Today till 10:45 am, Nifty & Sensex both were trading 1.5% down.
Nifty was down by 150 points and Sensex by almost 1000 points.
Nifty's sectoral indices are also in red.
Nifty IT, Nifty Bank, and Nifty Realty has seen the highest falls.
In today's video, we will tell you the possible reasons behind this sharp fall.
We will also tell you market sentiments of the near future.
Let's start today's update.
The first reason is US Fed's Hawkish stance in the recent health meeting.
US Fed's officials are concerned about the increasing inflation and global supply challenges.
As per them, the job market is tight and the rise in inflation is a major issue.
During this, interest rates can be accelerated by the federal reserve.
Due to Fed's stance, US treasury yields also saw a rise.
On Wednesday, US 10- year yield closed at 1.703%
US 2-year yield and 5-year yields, which are sensitive to rate hike expectations, are at their highest levels since Q1 2020.
Also, a major concern at a global level is the Covid new variant
Covid cases are showing rapid increase due to Delta and especially Omicron variant.
India recorded more than 90,000 cases one day.
Omicron cases have touched 2135 crores.
Mumbai recorded the highest number in fresh cases.
It is at 15,166
As cases are increasing, many states have implemented rules.
And imposes restrictions on unnecessary travel.
The 3rd wave in India can indicate the rise in cases and lockdowns may be implemented.
These actions will have a direct impact on the economy and market
This is why the market reacted negatively and saw a fall.
As per the global market, Nasdaq fell by 3%
SNP500 also saw a sharp fall.
Australian shares fell by 1.53% Japan Nikkei stock index fell by 2.08%
In near future, the market's sentiments will be heavily dependent on covid cases and the global market's stance.
If covid cases increase like this, it will directly impact economies.
We should check how RBI, US Fed, and other central banks tackle inflation & unemployment concerns.
Due to a hike in interest rates, the capital flow will happen from equity asset class to debt.
Then market may have further corrections.
As we get more important updates, we will get more videos for you.
Comment and tell us what strategies you follow during market corrections to keep your capital safe.
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