Editor’s Take: Anil Singhvi explains how far market may exhibit weakness in short and long-term; lists ways to contain inflation

In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi highlighted key reasons for the market to stop its downward rally on both a short and long-term basis. The benchmark indices – Sensex and Nifty50 – are trading negative for the third straight session. 

On a short-term basis, the managing editor said the markets would continue to fall for the next three days, mainly on the weak global cues and in anticipation of the US Fed Reserve meeting’s decision. The US Fed is scheduled to meet today and tomorrow. 

Singhvi said the current weakness in the market may be curbed once it digests the US Fed’s decision mostly by Thursday. On Monday, he had estimated that the market to be under pressure for next 2-3 following days.  

Besides, the Fed meeting decision, the market would also see weekly expiry on Thursday and probably, it shall stop its downward rally by Thursday on a short-term basis. 

#EditorsTake

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जानिए इस वीडियो में.

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On a long-term front, the managing editor said inflation mess globally is denting the markets in India as well as globally, however, to fight inflation central banks across the globe including the Reserve Bank of India and taking interest rates, Singhvi said, adding that rate hikes have higher side effects.  

However, the second option, Singhvi suggested to curb inflation earliest is easing up tensions between Russia and Ukraine. He added that there are many countries, which doesn’t want this war to end, mainly due to their personal agenda. 

He estimated the end of the Russia-Ukraine war shall be the biggest trigger for not just the world economy and commodities but also for the global markets, including India. He believes the war should see a full stop as we approach the winter season.  

Russia is the biggest winner so far from the invasion of Ukraine as it has made a lot of money – every gulf country and oil producer wants Russia to continue the fight, while Europe doesn’t have the strength to stop Russia, the managing editor said.