Finance Ministry Warns About Stock Market Risks
While some market optimists are predicting that the Sensex could surpass 100,000 next year.
The finance ministry has issued a warning regarding potential risks in the stock markets, which have recently reached record highs.
They expressed concerns that a global downturn could be on the horizon, influenced by recent interest rate cuts in the US and China, as well as fears of recessions in advanced economies and ongoing geopolitical tensions.
While some market optimists are predicting that the Sensex could surpass 100,000 next year, the ministry cautioned that current overbought conditions could lead to a market correction.
In response to rising trading activity, the Securities and Exchange Board of India (Sebi) is planning to implement stricter regulations on the futures and options (F&O) segment at its upcoming board meeting on September 30.
This comes as the BSE Sensex surged 666.25 points to settle at a record high of 85,836.12, driven by robust liquidity.
In the foreign exchange market, the rupee fell slightly to 83.64 against the dollar, influenced by month-end demand from importers, particularly in the oil sector. However, the rupee found some support from foreign portfolio inflows, which helped it recover from a day’s low of 83.71.
Overall, the market landscape remains uncertain, and the upcoming quarterly earnings reports from corporations will be critical in assessing the strength and stability of the markets moving forward. Investors are advised to stay cautious as they navigate this volatile environment.