Anil Singhvi decodes tremendous action in global markets and how it will affect India

On Friday, positive global action has been witnessed on the SGX Nifty. American markets too made new records. Speaking on this tremendous activity in global markets, Zee Business Managing Editor Anil Singhvi gave an example to explain the growth momentum.

The Market Guru said that, suppose if Finance Minister Nirmala Sitharaman says India's economy is growing at a good pace, the results of the companies are showing a bit of overheating and the borrowing rate in the country is around lifetime low, which has to be increased. Then imagine how much the markets will fall. 

See Zee Business Live TV Streaming Below:

And later if the finance minister says that she did not mean what she said then will the market rise? No, it will not happen, he added.

He said this is what has happened in America where Treasury Secretary Janet Yellen said the same two days ago. She then corrected her statement but the American market did not focus on what she said earlier, but instead went for the corrected statement.

If it is said that the economy is overheating and still the market does not fall and goes through immediate recovery and hits lifetime highs for two consecutive days then this shows how strong the American market is, Anil Singhvi said.

He added that this shows the strength of the global market. The main point is that the momentum in the global market is so strong that even if there is some small fall which later corrects due to some news or the other, then it shows people are ready to buy stocks, he added.

The Market Guru further said that there is enough money, liquidity, and even the borrowing rate is low. The only thing to worry was that in the initial 3-4 months of this year there was the rise in bond yield in the American market but even that is not there now, he said.

The bond yield did not rise even after Janet Yellen's statement and this means that she and the market are thinking in different directions, Anil Singhvi said. He added that the point is simple and that is, as per the collective wisdom, market thinks that overheating is good, it likes good results of companies, the less the unemployment rate the better it is, it thinks that if inflation rises in America then there is nothing to worry.

He concluded by saying that the global market is very strong and for today's positive trend in the market one of the credits can be given to America.