Well begun is half done goes an old adage, but that famous axiom didn't apply to the Indian markets today. The main indices closed lower for a third consecutive session today, as investors reacted to latest quarterly numbers and RBI's measures to check the rupee's slide. Disappointing data on exports and car sales also weighed on the sentiment today as did a few lower-than-expected corporate results. Data out of China and the UK also had a sobering effect on investors' morale.
After a very good start and strong morning session, the main indices suddenly turned weaker in the afternoon trade and failed to recover from there on. Fresh selling was seen in Metals, Auto, Power and Pharma stocks
"Market players are likely to remain skittish amid persistent FII selling and weakness in the rupee. Watch out for the IIP data on Friday. Quarterly result-oriented action is likely to continue for a while as many companies are yet to announce their numbers. Global markets may continue to be driven by eurozone problems in the near term. Fresh batch of Chinese data will also be followed closely along with Fed chief Ben Bernanke’s latest speech. While the recent sharp fall has made valuations of Indian stocks attractive, the macro-economic headwinds (both local and global) are not showing any signs of abating. Therefore, one really needs to remain cautious and wait for the right opportunity to resume your shopping spree,"
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