Bulls Vs Bears! How will the stock markets behave going forward? Know the triggers!
The Reserve Bank of Indias (RBI) announcement to extend the moratorium period by another three months has had a positive impact on the market today. But this cannot hide the fact that there are problems because of which the moratorium period has been extended
How will the stock markets behave in future? Will it be a bull or a bear market? What factors will determine the course of the markets going forward? What kind of triggers may arise? As an investor, all these questions must be worrying you. Well, Zee Business has a detailed analysis for you.
The Reserve Bank of India’s (RBI) announcement to extend the moratorium period by another three months has had a positive impact on the market today. But this cannot hide the fact that there are problems because of which the moratorium period has been extended.
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The banks, NBFCs and financial institutions which have to give this moratorium are already in trouble. The banks and financial institutions have a big weightage on Nifty. This sector has the maximum weightage on Nifty. The moratorium will impact not only Bank Nifty but also Nifty 50.
Apart from this, external factors like the ongoing tensions between the US and China are dampening the mood. Problems are on multiple fronts including the upcoming US elections, coronavirus situation and US-China trade war.
FIIs have been on a selling spree for the last eight days. Data of every month in this year suggests that the FIIs have been selling and this month could be no different.
The coronovirus cases are only rising by the day and there are still no indications of it reaching its peak. In India too, the cases have been on the rise.
Triggers for the Bull Market
Repo rate has been cut by the banking regulator which will likely make the loans cheaper. This may act as a trigger and pull the economy. There is also a section which believes that the worst from coronavirus is already over. The fourth phase of lockdown has seen some relaxations.
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The aviation sector will soon resume operations (25 May) while the railways sector has already begun operations. The import bill will reduce as the crude oil prices have been low. The government’s push on local manufacturing could be another positive trigger.
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