Investors caution: The "bubble" of the stock market could burst at any moment

New Delhi, Saturday 21 November 2020

The rally in the stock market has reached its peak at the moment, the Sensex has crossed 44 thousand at the moment, on the other hand all the reports about the economy are negative, in this situation is not the current situation bubble bubble? This question is bothering investors, some market experts also say that the bullish trend in the market is about to end now, and there will be a correction in the stock market.

Foreign portfolio investors bought heavily in November, which led to a rally in the stock market. FPI did not make such a purchase during the lockdown, with a net inflow of over Rs 44,000 crore in the first 20 days of November, while the Sensex gained 4200 points. There has been an 11 per cent rise.

Trump's team has banned the emergency lending program from the US Treasury, it will affect the whole world, if the tussle between Biden and Trump is happening on the world economy, Trump is not ready to leave his seat, in such a situation it will have a direct effect on the stock market. .

Corona cases are on the rise all over the world, including in India, and lockdowns are being imposed again. As corona cases escalate in Maharashtra, the government is considering banning train and plane services again, experts have already said, in a month. There will be another wave of Corona, which will be very dangerous, in such a situation the possibility of Corona's case growing is clear.

It may be mentioned here that RBI Governor Shaktikant Das has also warned investors about the current rally in the stock market, as the country's economy and stock market moves in a completely different direction.