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CPI inflation rising:- The CPI inflation has increased from 4.06 % to 5.03 % on account of mainly rise in food articles prices. As the summer sets in, the CPI inflation is bound only to rise and this will create pressure on the overall inflation data. RBI sooner or later will come under pressure to increase the interest rates.

WPI inflation up:- The WPI inflation has also gone up from 2.03 % to 4.17% which is highest in 27 months. The rise in CPI and WPI clearly shows that the inflation is getting out of control and one needs to put the mechanism of higher interest rates to control it.

IIP index in negative:- The IIP index which tracks the demand in the manufacturing segment has again entered into negative zone of -1.6 % which shows contraction in demand.

Stock market under pressure:-  The Stock markets which had spectacular rally are also under pressure as the FII are pulling out the money regularly. In March 2021 so far they have invested net amount of only Rs. 3000 crore as compared to Rs. 25000 crore in January 2021 and Rs. 19000 in Feb 2021.

Rising Bond Yields in USA a threat:-  The biggest threat coming to the stock markets are from the USA bond markets where the yields have gone up to 1.61 % which is crating jitters. The rise in the bond yields will make the stock markets correct heavily.

Rising Covid cases in India:-  The rising covid 19 cases is again creating alarms as the no of infections are rising on a daily basis. The news of lock down in Nagpur and night curfew again coming back at many places will dampen the spirit of the economy which is still struggling and not yet out of woods.

Suggestions:-  One of the important things to bring the spirit of investment back on track and to reduce the risk of covid is to vaccinate everyone above the age of 18 and do vaccination on the mass basis with daily target of 1 crore people. This will bring positivity in the economy and things will come back on track.

 




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