Investors had hoped that the pace of US interest rate hikes would slow as inflation eased. But in the end, it didn’t happen. The country’s central bank, the Federal Reserve, raised interest rates by another 50 basis points. With indications, several more interest rate hikes are on the way to combat steep price hikes. This message has pulled down the stock market of different countries including America. India is on the brink of collapse. On Thursday the Sensex was about 879 (1.40 per cent) points. 61 thousand returns to the house.
Fixed at 61 thousand 799.03. Nifty fell to 18,144.90 after falling to 245.40. The price of money has decreased quite a bit. One dollar increased by 27 paise to 82.76 rupees.
Interest rates in America have risen to 4.25-4.50 per cent, the highest in 15 years. Market expert Ashish Nandy says that the investors expected that there may be another 50-basis point interest increase. But investors were disappointed by the message that it will be raised next year as well, and at a higher-than-expected rate. Especially since the Fed thinks inflation is too high and will continue to fight it. So, despite fears of a recession, interest rates are rising. The European Central Bank and the Bank of England have increased interest rates by 50 basis points.
Message from the Reserve Bank
Earlier, the Reserve Bank has given a message that the war against price increases is going on. Even if the interest rate increases in the world market, the risk to this country’s economy remains, he has also talked about it. As a result, as the interest rate increased in America, many people sold their shares and raised profits. Foreign investment firms sold 710 points worth Rs 74 crore. According to Ashish, “The signs of a recession in America remain. The problem is, if a recession comes, the entire world economy will slow down. The wave will hit India too. Imports, exports, commodity prices, high raw materials, supply – Crisis must be solved everywhere.”
Financial growth may suffer. That is why the index has collapsed today. Especially shares of IT companies. Because they are mainly dependent on America.
Kamal Parekh, former president of the Calcutta Stock Exchange, says corporate firms will start incurring losses if the financial crisis is not contained. But his message, “India’s bullish market needed this correction. A sudden correction is not good. But gradually Sensex, Nifty fall at least 15% will pave the way for fresh investment.” According to financial expert Anirban Dutt, the Indian stock market is expected to remain strong in the coming days. The IMF itself says that this country is a bright spot for investment. On top of that, oil is available at a low price from Russia.
This will enable the country’s citizens to reduce the cost of oil. Even if the index fluctuates wildly, it will not take time to turn around.
Message from the Fed
• Interest rates were hiked by another 50 basis points to account for rising prices in the US.