Looks like investors took the old adage ‘Sell in May and go away’ quite seriously. There was no dearth of misery in May, as eurozone debt problems resurfaced in the form of Greek politics and Spain’s banking troubles. The of the largest growth engines of the world - the US and China – are also losing steam.
India is not immune to the global headwinds but the fact of the matter is that much of the problems are home grown. That GDP growth in Q4 was the slowest in nine years shows how big a setback we have suffered. UPA II’s stint has been a disaster so far. While growth has decelerated, inflation remains sticky and deficits are soaring. The rupee’s slide underscores the deterioration in economic fundamentals.
The big question is have we seen the worst? The fear is things could deteriorate further, especially if there are more shocks out of the eurozone. We may see more red ticks this morning due to global selloff and GDP shocker. Watch out for data on auto sales, exports and manufacturing PMI. Globally too, the markets will keenly track data on manufacturing sector PMIs, auto sales and US monthly job additions.
The Nifty opened lower on Thursday but managed to recoup some loses despite weaker than expected Q4 GDP data. It finally closed below 4,950. This move has negated the weekly breakout and the Nifty is back in the trading range of 4,800-4,950. We maintain our cautious outlook for the near term on the back of strength in the USD.
Key Results Today: McNally Bharat and Mphasis
0 comments:
Post a Comment