News Cubic Studio

Truth and Reality

The position of COVID-19 will decide the direction of the market

After the fall in the domestic stock markets last week, the attitude of investors in the coming week will largely depend on the graph of Kovid-19. Stock markets came under pressure last week after the US central bank, the Federal Reserve. For the first time in five weeks, the Sensex and Nifty saw a weekly decline. The continuous falling graph of the epidemic in domestic factors is a positive sign for the country’s economy. If this trend continues in the coming week also, then investors can invest money in the market. Along with this, he will also keep an eye on the speed of vaccination.
The BSE Sensex, which was in gains for the first two days last week, broke down the next two days after the Fed’s statement. On Friday, it closed with slight gains on the weekend. During the week, it closed at 52,344.45, down 130.31 points, or 0.25 percent.

The Fed’s statement said that if inflation exceeds two percent and the labor market strengthens as expected, interest rates are expected to increase by 0.6 percent by the year 2023. Due to this there was a huge fall in gold and silver. Simultaneously, selling started in most of the stock markets.

The Nifty of the National Stock

Exchange also closed at a new record level on Monday and Tuesday, but after that it saw a decline for the next three days. It fell 116 points, or 0.73 per cent, during the week to 15,683.35 on the weekend.

Selling dominated the remaining four days except Tuesday in medium and small companies. BSE Midcap fell by 689.62 points, or 3.01 per cent, to 22,238.21 and Smallcap fell 467.47 points or 1.86 per cent to 24,648.83 on Friday.