STOCK MARKET NEWS

Why markets are falling and how long they continue

Last week the rising inflation and rising oil prices had made the Indian stock markets bearish and both indices Nifty and sensex closed near there 52 weeks low.

Rising Oil prices –

Oil prices are increasing and making new highs. Last week the Oil rose to $140 per barrel which is new high.

Rising Inflation rates–

Indian inflation is also making new high. The inflation stood at 11.42% last week. This inflation is going to affect the Indian economy and if remains in two digits then RBI is going to taking more steps to bring down the inflation rates by increasing repo rate ( The price at which RBI lends) and reverse repo rate (price at which RBI borrows) which may make banks to raise the interest rates.

Rising of Interest Rates –

According to market analyst rising interest rates may bring down the companies earnings due to which there is negative sentiments on stock markets.
The bearish sentiment is not only on Indian markets but also all on global markets.

Effect of above factors –

Over all the rising interest rates will make effect on all sectors but the major impact will be on the interest rate sensitive sectors like PSU banks, Realty, Autos, Metals, Construction etc.
Auto will be sector which will bear the brunt of the interest rate hike. The sector will be impacted by three factors -- rising raw-material prices, increase in borrowing cost and less demand due to higher borrowing cost of the consumers. The real estate sector, too, faces a double blow. Decrease in demand is likely owing to higher borrowing costs, and because of higher cost of construction, the cost of funds will increase.

Support levels –

Both Indian indices Nifty and Sensex are trading near there 52 weeks low.
Support for nifty- 4100.
If this support level breaks then nifty may go down till 4000 levels.

Precaution steps –

The current bearish sentiments are for short term and if you take for long term then the Indian economy and markets will shine.
Please don’t panic in bearish market sentiments and sell stocks from your holdings.
Stocks having good fundamentals will recover as market recovers.
Avoid day trading and future trading unless you have expertise in them.

Our steps

Taking into consideration all these factors and future growth prospects we are scanning different sectors and stocks which may have less impact and provide excellent returns( above 70%) in long term investments. We will post them on website by next week and update you all according.