Market may continue to witness weak trends
After remaining close to the psychological 20,000 mark in the last few weeks, Sensex has finally closed below it in a decisive manner. The importance of this lower closing is high because it occurred on the first day of new F&O cycle. So don't be surprised if the market weakness continued in this week as well.
With the US economy contracting after a gap of 3 years, US Fed had no option but to continue with the loose monetary policy in its last week's meeting and this helped the Dow Jones to cross the 14,000 market first time since 2007. Though the weak dollar has helped to increase the value of Rupee also a bit, the gain is already negated by the rise in international crude oil prices (ie Brent variety is already at $116 now). Markets fell despite RBI delivering as per the expectations (ie cut the repo rate and CRR by 25 bps each). What damped the market sentiment was RBI's hint about future rate cuts - ie RBI wants the Govt to bring fiscal deficit under control before delivery more rate cuts. The debt market also fell increasing the 10 year GOI paper yield from 7.83% to 7.91%. With the credit policy already over, the next focus will on the budget. Major data worth watching in this week includeHSBC Markit Services PMI data, Import / export data and IIP data. While most of the very big companies have already declared their results, some interesting results are still expected in this week. And these include results fromBank of BarodaBSE -0.03 %, United Spirits, NHPC, Apollo Tyres, Tech MahindraBSE 0.54 %, Godrej IndustriesBSE -0.48 %, CiplaBSE 1.58 %, MRF, ACC, Ambuja Cement, Tata Chem and Hindalco.
http://economictimes.indiatimes.com/markets/analysis/market-may-continue-to-witness-weak-trends/articleshow/18309423.cms
No comments:
Post a Comment