Sensex provides relief in a troubled world

 GDP contracted for two consecutive quarters from January to June.  It rose 2.6% in the July-September quarter.  Although the danger cannot be said to be over.  Because, the price increase of things has not come under control.  As a result, the country's top bank is increasing interest rates.  It may increase one more time in December.  Then the demand may decrease further.  Which is a big obstacle in the way of financial growth.  Europe is also suffering from the fear of recession.  The European Central Bank has been raising interest rates to curb rampant inflation.  While this may moderate price growth, fiscal growth will slow down.  Employment will decrease.  As a result, it will be difficult to prevent recession.

• What's the news?

Europe is not as bad as America.  But even India could not control the price increase.  The target set by the Reserve Bank to bring it below the 6% tolerance limit has not been met even after nine months of continuous efforts.  In contrast, it rose further to 7.41% in September.  They have to submit a report to the center this time, telling why the prices of things are not being controlled and what steps can be taken for it in the coming days.  Before that, the credit policy committee of the apex bank will hold a special meeting on November 3 to discuss the issues.  If the rate of price increase goes down in October, interest may be increased in the country again in December.  How much, that is now a matter of practice.

• What's next?

Foreign investment firms returned to the Indian market as buyers in July and August after selling shares in Nagara.  But as the situation in the world market was turning, capital started to move again in September, October.  However, the index did not go down.  One of the reasons for this is the investment within the country.  Sensex rose 525 points in late Diwali evening trading.  Maximum on Murat day in 14 years.  It stopped at 59,960 on Friday.  But the undercurrent of uncertainty is still flowing.  As a result, investors should tread carefully.