Alert for Stock market Investors
Hello friends Did you realize that a one-lakh rupee investment in Nifty last year would today be worth Rs 99,000? That's precise. The latest sell-off in global shares has shattered all of Nifty's year-to-date gains. Despite a minor improvement in May, retail inflation remains significantly above the Reserve Bank of India's (RBI) tolerance ceiling of 6%. A twin whammy of rising commodity prices, particularly for oil, and a record-low Rupee has only exacerbated the situation. Experts believe that the RBI would raise interest rates even higher to keep inflation under control, which would be a tremendous disadvantage. The United States is facing the same issue but on a much larger scale! The short-term US 2-year Treasury yield surpassed 3% for the first time since the Global Financial Crisis of 2007. Rising short-term rates reflect sour long-term market sentiment, implying that investors are losing faith in the US market's prospects. This is a traditional indication of a r