- Rupee –US Dollar Exchange Rate nearing all time high at approx. Rs 68/USD
- Brent Oil at approx. $80/barrel from approx. $27/barrel in less than 3 Years
- 10 Year Indian Government Bond Yield at approx. 7.8 from approx. 6.2 in less than 2 Years
- 10 Year US Government Bond Yields at approx. 3. 1 from approx. 1.4 in less than 2 Years
Ideal Scenario for Bears to Overpower Bulls
Let’s look at the above mentioned factors on charts and their probable move going forward say in next year or so and their likely impact on Indian markets viz. NIFTY
The Raging bull rally in 2017 in U.S. Market which continued in January 2018, has been halted in recent months. One of the reasons for initial correction in February was Rising U.S. Bond Yields. Thereafter, Rising Bond Yields took a little breather. Now again Bond yields have started rising which could prove to be dampener for U.S Equity Market going forward.
Finally the most awaited Budget for 2018 was presented in Parliament on 1st Feb 2018. Budget’s main Focus was on Agriculture, Rural India, Infrastructure, Health Care, Employment generation. It was mentioned that Indian Economy is likely to expand 7.5% in FY 2018 and India on Course of 8% GDP growth.
“The party is on and nobody wants to leave the dance floor in a hurry”. 2017 has been a super year for the majority of markets across the globe with the US Market, the world’s biggest market represented by S&P 500 Index, seeing a continuous uptrend giving 19.42% return for the year with not even a 5% correction during the year. India’s NIFTY 50 has outperformed S&P 500 and has given a return of 28.65% for the year.