It’s not a pleasant experience as Indian market and currency continue to go astray. The world seemed fine on Tuesday but ours was one of the rare markets that fared badly on Tuesday. The trigger for the worldwide rally was hope of new growth measures from the eurozone leaders. We still have to wait and see what concrete decisions are taken by the European officials at today’s summit in Brussels. The biggest uncertainty confronting global markets is whether Greece will remain part of the 17-member euro area or not. If not, what are going to be the consequences? So, the outlook remains murky and it would be sensible to remain on guard for any untoward accidents.
Back home, UPA II has completed tumultuous three years in office. The Government continues to blame global problems for all our ills. The rupee remains vulnerable to further assault in the absence of reforms and widening twin deficits. Weakness in the rupee is hurting FII flows. Investor morale, business confidence and consumer sentiment are all pretty low. It will be a while before things start looking up. So brace for more uncertainty and volatility in the near term. Stick to safe bets and avoid risky ones.
The NSE Nifty failed to break above previous week's peak of 4957 despite higher opening and positive global cues. Renewed selling pressure in afternoon trading engulfed the previous white candle. The Nifty is about to retest the recent low of 4796. A move below the same could aggravate selling in the near term.
India’s economic growth is likely to rise to more than 7.5% in calendar year 2013 but continued government policy uncertainty could erode country’s longer-term growth prospects, OECD said.
The RBI will pump Rs. 120bn into the market this week by buying government securities.
The Government has introduced a bill in the Lok Sabha to empower the RBI to regulate the micro-finance industry and fix interest rates ceiling on loans to be provided by lenders.
Key Results Today: BHEL, Canara Bank, Chennai Petroleum Corp, JB Chemicals, Jyothy Labs, Lakshmi Machine Works, MRPL, REC, Subex, Tata Global and Teck Mahindra.
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