USA : Market pressure due to high interest rates and inflation

The last week has been a loss for investors in the stock market. High interest rates and rising inflation in the US also put pressure on the market. The Sensex was down 473 points at 48,732 and the Nifty fell 145 points to close at 14,677. Banking, financial, IT and metal stocks were sold during this period. Earlier, the market gained 3% in two consecutive weeks.

According to market experts, the quarterly results this week and Corona's case will determine the market's move. However, the process of vaccination will be important for the long term. At the same time, the movement of the global stock market may also see huge fluctuations in the domestic market for short periods. In such a situation, investors are advised to be cautious while investing. This week, around 170 companies will release fourth quarter results. This includes companies like State Bank of India, Hindalco, Tata Motors, Bharti Airtel, Shree Cement, Indian Oil Corporation, Havells India including Colgate Palmolive.

Due to the epidemic, the economy of the world is still recovering. During this period, commodities especially metal prices have been increasing continuously for the last few days. According to the exchange data, the Nifty Metal Index has gained nearly 250% since March 2020. This is more than any other sector. However, worldwide metal prices are likely to be reduced due to reduced corona cases and production cuts by China. Foreign investors are also nervous due to the fear of increasing infection in the country.

Investors have pulled out about Rs 8,700 crore from the market in May. Experts believe that if the cases of infection in the country continue to decrease, then investment can increase rather than decrease. In April, FII had sold shares worth about 12 thousand crore rupees. Now speaking of domestic investors, they bought shares worth Rs 891 crore so far in May, which bought 11,360 crore shares last month.