Why stock markets may fall in May? Check out Anil Singhvi's 10-point analysis

The coronavirus pandemic has brought a a lot of volatility in markets, globally. The volatility can be gauged from fact that after a few good sessions, even the Indian markets opened with a big a fall on Monday. The last week however, saw markets put up a good show. Zee Business has been maintaining that the Indian markets will take cues from the global markets. Till last week, number of coronavirus cases were on the rise in the US. Even in India, the cases have been on the rise. There are no signs of growth as of now. The extension of lockdown for two weeks has been on expected lines. But, despite all this the last week was good for markets. The only reason behind that is the performance of US markets.

Zee Business Managing Editor Anil Singhvi feels that the global markets are now weakening. The markets in this month may see further falls, in fact. After a decent April month, the month of May can see a profit-booking frenzy, pressure and selling trends.  What should investors do? Well, investors should take every opportunity to book profits in this month.

Anil Singhvi explains reasons behind his outlook:

Why markets fall in May

1. Tarrif war between US and China: Another bout of US-China tariff war is likely to emerge. Donald Trump's stand on this issue will be closely watched. Anil Singhvi has been saying that once this coronavirus phase is over, the world may get united to take action against China. This will be the biggest reason for tepid economic growth in 2020. But, Trump has already started his verbal onslaught on China which could be a reason for concern. The situation may aggravate if China responds.

2. Metal and auto sectors likely to get impacted due to tariff wars: These two sectors may take a big hit in case a tariff war breaks between US and China. The stocks of companies from these two sectors will be under pressure. Metals and auto stocks will weaken.

3. Crude oil may fall further: One of the biggest worries for global markets is crude oil prices which may fall further going forward. Global Oil consumption is low which may lead to further weakening. This will be directly impacting many economies.  

4. Warren Buffet sees big fall: Anil Singhvi says that the revelations made during the Annual General Meeting (AGM) of Berkshire Hathaway are worrisome. Warren Buffet has saved around USD 130 billion in the last one and half years. The US billionaire said that he will put this money in the market at the opportune time. Buffet, however, revealed that he has not put any money in the market till now. Moreover, he has sold aviation stocks worth USD 5-6 billion. This is surprising, the Managing Editor said as world's finest investor not putting his money despite a fall of this proportion, is worrying.

5. Corona continues to be a pain point: Us is witnessing a rise in cases once again which is not a good sign. The deaths have been on the rise too.

6. Lockdown 3.0 in place and opening of big cities may take long

7. Delay in economic package  

8. HUL results indicating slow growth

9. Reliance Industries' rights issues unattractive

See Zee Business Live TV Streaming Below:

10. After rising by 30 per cent in April, markets have become expensive.