After seeing the positive economic data and political statements from the Reserve Bank of India bring considerable gains, the market is expected to remain strong in the short to medium term with the help of the decline in coronavirus cases and the global risk management strategy. However, due to concerns about rising inflation and central bank policies, the heterogeneity of the global market has caused volatility to halve.
A low base, affected by the epidemic, increased consumer demand, shortage of personnel led to rising wages and rising prices of energy and raw materials. It rose to 6% in June. In the past, the world market was highly sensitive to rising inflationary pressures, which had a negative impact on stock investment, but despite the poor performance, this time the market did not experience any negative impact.
The antidote is the Fed’s loose statement in its recent policy that inflation is temporary in an economy hit by the coronavirus.When the economy grows again, we cannot expect the same situation to happen in the next cycle. On the eve of the European Central Bank (ECB) meeting, the domestic market also experienced a decline in profits due to the downturn in the European market. -Procurement plan to support economic recovery.
Due to the attractive prospects of major central banks, the market remains comfortable. The domestic market focuses on the stocks and industries that will benefit the most from this announcement. Investors need to change their investment portfolio. Consumer-oriented companies, whether simple or prudent.
We may need to reduce weight in high-value industries such as IT, pharmaceuticals, consumer goods, metallurgy and telecommunications, although they still have good long-term prospects, especially IT and pharmaceuticals can bear a large part of the weight, and in the consolidation phase, because they are large The biggest winner after the epidemic and pandemic.