Market fall with Crude Oil and Donald Trump
In 2016, when the price of Crude oil drops to $25 per barrel, nifty also goes down to 6900 levels. Again when the price of crude oil reaches or we can say comes back to the $40 per barrel in the mid 2016, then the price of nifty also started to increase towards the 9000 levels. The news of Donald trump who is now the new president of America had a very verse effect on the market. Indian Market goes into its down as all considered him as a dictator and bad for Indian economy.
Again the bad news of demonetization makes the market goes down. Demonetization had a very bad effect on the economy and our GDP growth. But by the time the effect of demonetization is decreasing and market is also trying hard to recover. But investors still feel worry about the Donald trump and this effect can be easily seen on the market. This is the reason that nifty is unable to cross the level of 8500. To cross the level of 8500 the worries of investors should be decreased or it has to be removed and this can only be done by the upcoming budget on 1 Feb 2017 and RBI’s Rate Cut.
Update: Sudden Interest of Investors has pushed up Nifty above 8600
If budget comes out to be good at basic financial level then market can reach the level of 8900. From my point of view three sectors will get the high priority in budget i.e agricultural sector, Housing and Infra sector and Digital sector.
Most Important Sectors in Budget
Agricultural Sector really needs enough improvement to make it functional easily and Independently. At present Stage, most of the farmers does not contain enough Power and Money to work easily. First Problem, that farmer generally face is of Credit. Interest Rate of Loans are not available at suitable prices. Second problem is of poor quality of Crops. General Crops have not enough shield to stay good in any hard Rainfall, Storm. HYVS seeds are not available in abundance for poor farmers. And the last main problem is of irrigation. Improper irrigation leads to the poor crop as well as to the farmer.
Decrease in Interest rate would help farmers to increase their profit and then invest it in development of their irrigation facilities and to Buy Good Seeds for their crops.
Housing companies also facing problem of Delivering Home to family at time. Most of the people use to fear and Confused about how to find their best destiny. If this fear would continue in Consumer mind, then the future of Housing Companies would not be good at all. Therefore, Some process of liberalization in Housing Sector should be done at National Level or according to state level where it needs more and less.
While Digital Transaction is new topic on which government is focusing most. For promoting Digital transaction, government have to take some more steps which would come from Budget. Although, Lower interest rates and tax are the main demands for what public are willing. Thus, few Investment in Agricultural related companies, Housing and Infra companies would be a great option for short term.
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