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WHY the STOCK MARKET IS A shambles ? : SN RAYALA

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staff Reporter

Is it Bolt from Blue ? are measures not taken to prevent economic disaster whatever paid the price entire county !!

 

Stock markets across the world including India are falling continuously for the past few months. Nifty has fallen more than 2000 points from high.

In India everything seems to be ok from stock market point of view I.e. Robust economic growth, excellent corporate results, all time GST collections etc… But why the market is falling?

This is some thing related to the king and his 7sons story.

Our stock market falling because, Foreign Institutional  investors (FII) are relentlessly selling every day.

FII are selling because in US interest rates are raising fast.

US interest rates are raising because of high inflation

High inflation because more demand for products and services due to more money in the hands and less supply of goods.

Supply side bottlenecks due to Covid lock downs and Russia/ Ukraine war restrictions.

Reserve banks across the world are increasing interest rates to suck the liquidity in the system. Once the war comes to an end, and factories start producing full scale production,supply side bottle necks will come to an end.

Then we can expect bounce back in markets to its previous highs.

 

SN RAYALA

rayalasecurities@gmail.com

8008002244

 


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