Have the markets in India started to consolidate ahead of the union budget 2024 or are investors cutting bets on equities due to lower expectations of interest rates cuts?
What has made investors withdraw money from equities across the globe in most parts of Asia and the US in last two days is the worry that the US Federal Reserve may not be as eager to start cutting interest rates as soon as March
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It is often said rising equity markets just need a single unfavourable news to pale down the shine and optimism. This mostly holds true when markets are on an one-way journey northwards and does not really take long for sentiments to turn sour and fragile, leading one fall to other. The other way around also stands true.
The bull markets triggered by a slew of factors including election results in five states seem to have come to a screeching halt. In the last two days, the Sensex lost 2294.79 points or 3.14 percent while the Nifty also shed 525.5 points or 2.37 percent at the closing on Thursday.