Why is Nifty Falling

Nifty has fallen from it’s high of 11172 to a low 9976, in a matter of months. While most of us wonder what really went wrong to an economy growing at an impressive 7%.

NIFTY CHART

The Fed Effect

I’m sure most us have missed what is called the rise in the US Treasury Yields. After the recent hike in rates from 1.50 to 1.75 and three more such bazookas in the pipeline. It’s obvious that funds will flow into safer havens.

How far can Nifty Fall

More such corrections might not be in the pipeline as the market will absorb the upcoming hike of the US funds rate ahead of time.

US FUND RATE

Where are Fund Houses Investing?

The US Funds Rate is expected to stand at 2.50 by the end of December 2018. Look closely and you’ll realize that the US Treasury will yield a neat 42.3% returns in under a year.

No Surprise

So, it’s no surprise that the equity markets with all its risks will lose shine and Nifty has indeed fallen 10.5% from its recent highs.

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