Since 1980 , Nifty Gained avreage of 4% Ahead of Elections.This is really surprising that market gained nearly 10% since march 9 in 10 days only. That is a good sign before election.If we go in history always before election market jump nicely.
Sector which are hot are auto , media,FMCG because of demand and sale in these company grow during election.Election are going to begin on april 16 to may 13.
Global Concern are also improtant .Fed to buy up to $1.3 trillion debt,up lending.
With the benchmark Federal Funds rate at nearly zero, the Fed has decided to shift its focus to pumping money into the credit market. The Federal Open Market Committee has left benchmark lending rate unchanged at 0% to 0.25%.
The Fed announced plans to print USD 1.15 trillion. This also includes a plan to buy USD 300 billion of treasuries over the next six months. Mortgage rates might come down as a result.
The Fed will also buy an additional USD 750 billion in agency mortgage backed securities, bringing its total purchases of these securities to USD 1.25 trillion. It will also buy an additional USD 100 billion agency debt and will boost its purchase of Fannie and Freddie debt to USD 200 billion.
The Fed's balance sheet which is up to around USD 2 trillion will soar up again by another trillion dollars.
Fed Boost Cheers in Overall Market but again a question will it solve the complete problem.Answer is 'NO' Because things are at worst level and it will not change overnight , will take some time years and so.But one thing sure buying is really worthfull at these level in equity market for long term investors of a horizon of 3 years.
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