The BSE Sensex and Nifty are trading near 13 months low and have declined 17% from the 2015 High which we saw on 04 March 2015. In Just 6 months Stock market have wiped out the gains made in past 13 months.Let me put the reason from both Technical and Fundamental Perceptive Sensex corrected by 500 points Nifty almost 200 Points making today as Black Friday.I am discussing few points below which would had led to the correction.Continue Reading
- Concerns over Fed rate hike
Equity Market likes liquidity, Friday Strong US jobs data and Unemployment rate coming sub 6% fueled expectations that the US Federal Reserve may raise interest rates sooner than previously thought.
Hike Rate means sucking liquidity out of system and this will flight to safe assets in Bonds and stronger currency like USD and money getting sucked out of Emerging market. India Markets have received $11Billion in 2015 till date and up 8% till date so profit booking can be done by FII's.