The world economy is still unstable. UK commodity prices rise to a 41-year high the risk of recession is increasing. The European region is on the brink of recession due to high prices and interest rates. While price pressures eased slightly in America, interest rate hikes are not expected to stop. Meanwhile, the Indian stock market reached a new high. Sensex reached 62 thousand at the end of this first day. Although it rose slightly (107.73 points) on Wednesday, it settled at 61,980.72 points. Which is unprecedented. During the day it crossed 62 thousand. That high of 62,052.57 was the highest in 52 weeks. On this day Nifty rose to 18, 409.65.
Opinions from the experts
A group of experts is seeing a cloud of fear in such a run of the market. According to them, this upturn is a relief for investors. Especially since the rate of inflation in the country has come down in October. Industrial production has returned to growth. But the environment of certainty needed for the index to soar is not yet in place. This is causing discomfort.
They claim that the geopolitical instability will continue if the Russia-Ukraine war does not stop. The fear of recession in the world economy is also looming. As a result, both supply and demand of products are affected. It is difficult to save India from its flames. The country’s export trade has already fallen by around 17%. However, despite all the odds, the country’s stock market is running in the opposite direction. The prices of many shares have suddenly increased enormously. In this situation, they advise ordinary investors to invest cautiously. They say that the index is a little too high given the surrounding situation.
Reason for the rise
According to market circles, the major reason for the rise in the index is the resumption of share buying by foreign investment firms in India. But the question arises if America raises interest rates again in the future, will they sell shares again? Then they think there will be a danger of collapse.
However, the price of rupees fell against the dollar on Wednesday. The dollar has crossed eighty-one rupees again. 35 paisa to end the day at Rs 81.26. The US currency fell by 37 paise on Tuesday.
According to Vinod Nair, market expert and head of research at Geojit Financial Services, the trajectory of the Indian market are still different given the current geopolitical unrest. Favorable economic indicators and the return of capital from foreign investment firms to India are one of the reasons for this. However, the country’s market may be somewhat cautious in the short and medium term as it has risen so high despite the adverse situation.
Conclusion
According to sources, in that case, ordinary investors may face a big fall. So, we have to look at all sides and move forward. Moreover, experts are also warning that a correction may come at any moment in such a high market.