Expert Zone
Straight from the Specialists
India Market Weekahead – Volatile market within a narrow range
(The views expressed in this column are the author’s own and do not represent those of Reuters)
A sharper-than-expected cut of 50 basis points in the repo rate boosted the benchmark indices early during the week. However, as expected, the Nifty could not gain higher than 5350 as apprehensions about the limited scope of further rate cuts suppressed sentiment.
The Reserve Bank of India (RBI) sounded cautious as recent growth trends indicate the economy is operating below its post-crisis levels. We anticipate a very limited scope for further reduction in policy rates going ahead as persistent liquidity deficit would make rate cuts difficult. Also the upside risk to inflation remains and further slippage on the fiscal front can aggravate inflationary pressure.
Globally, the euro zone markets also witnessed positive action following a successful bond auction by Spain and France. Appetite for these bonds during such distress times renewed some hope of revival in that region.
Global cues likely to dominate market
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Indian market ended with minor gains in a truncated week as data showing slowdown in growth in the services sector in March and weak global stocks hurt sentiment.
India Market Weekahead: Brace for volatility within a range
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It was a topsy-turvy week for markets as the benchmark indices hovered between positive and negative territory to finally end with a loss of 0.7 percent. A lacklustre budget initially triggered the weakness followed by a spate of negative events resulting in a fifth consecutive week of decline for the markets. The newly appointed railway minister’s move to roll back fares also unnerved investors.
India Market Weekahead: Global markets, FII action to be primary drivers
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It was a flattish close for the markets in what was supposed to be an eventful week. But the biggest event — the budget – turned out to be a non-event.
It’s Budget week but be ready to book profits
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The markets ended in negative territory for the third straight week after the ruling Congress party suffered a setback in the recently held assembly elections, clouding the government’s ability to push major economic reforms. However, a sharp pullback of 2 percent seen on Friday saved the indexes from suffering major losses.
Brace for volatility, but utilise opportunity
(The views expressed in this column are the author’s own and do not represent those of Reuters)
After a 21 percent run so far this year due to unabated liquidity flow, markets paused for two weeks in a row with a cut of close to 5 percent. Data showing a slowdown in GDP growth in Q3 December spooked investors while macroeconomic worries arising from high oil prices also weighed on sentiments.
India Market Weekahead: Need for caution as correction may be steep
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Nifty extended its rally for the seventh consecutive week to touch 5600, returning 3 pct for the week and making it one of the best market rallies in recent times. The bourse continued to show strength on signs that euro zone officials would approve a long-awaited bailout for Greece next week to avoid any disorderly default.
India Market Weekahead: Too good to last much longer
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The market has continued its upward move for the sixth consecutive week, gaining over 15 pct in 2012 and 20 pct over its December bottom without any worthwhile correction. The excellent market rally during the past few weeks is helped by global liquidity and strong FII inflows. However, mild profit booking was seen as the Nifty approached the all important resistance zone of 5400-5450.
India Market Weekahead: Use opportunity to partially book profits
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets surged over 2 pct during the week and are up 14 pct YTD driven by liquidity inflows from foreign investors, a CRR cut by the RBI, hopes of interest rate cuts in coming months, positive economic data and the government’s intention to kick-start the process on the policy front. The rally was unaffected by the court verdict on the 2G scam and the indices resumed an upward march.
India Market Weekahead: Time to take profits but increase exposure on correction
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The markets extended a winning streak and gained 3 pct during the week driven by strong inflows from foreign institutional investors, a decent set of quarterly numbers from key companies, positive news flows on the policy front and the RBI decision to cut cash reserve ratio (CRR) by 50 basis points.
