Expert Zone
Straight from the Specialists
India markets weekahead: New range for markets but scepticism abounds
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets finally came out of the range last week with the Nifty breaking the 5200/5250 resistance after a positive outcome to the long-awaited plan to resolve the European debt crisis. The plans included a ‘haircut’ of 50 pct on Greek debt, an increase to the size of the European Financial Stability Facility (EFSF), and a 9 pct core capital threshold for European banks.
The sentiments got a further boost after the Reserve Bank of India in its half-yearly review of monetary policy stated that the likelihood of a rate action in the December mid-quarter review is relatively low. Last week, it raised rates by 25 basis points as expected. U.S. GDP data and unemployment figures were encouraging enough for world markets to continue the rally.
The rupee found support near the 50 mark against the dollar as there was a sharp improvement in risk appetite following the EU summit. Fresh demand for rupee emerged which resulted in it advancing to 48.75 against the dollar. There will be scope for further recovery as risk appetite improves and I expect the rupee to be back in the 45/46 range in the next 3-4 months.
India markets weekahead: Await breakout or breakdown
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It was a volatile trading week with lots of stock-specific action driving Indian markets. Jittery world markets, earnings disappointments from front-line companies and a weakening rupee erased gains registered early in the week.
India markets weekahead: Lack of adverse news enough to sustain markets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
In one of the best weeks in recent times, we saw the broader indexes move up over four pct supported by positive FII statistics, better than estimated results from Infosys and lack of adverse international news flow.
Markets weekahead: Infosys results, IIP data to determine trend
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Nifty regained the 4,900 mark after plunging to approximately 4,750 levels during the week, as Indian indices played catch-up with a rally in global indices later in the week on hopes that Europe will recapitalise its banks to tame the euro zone debt crisis.
Truncated but action-packed week
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets displayed a spell of volatility in derivatives expiry week as the Nifty continued to remain below the psychological 5,000 mark. Continued uncertainty on the European economic situation, likely muted-to-weak Q2 Sept corporate earnings and weak global stocks weighed on market sentiment.
India Markets Weekahead: Savage correction but time to buy
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets succumbed to selling pressure and the Nifty corrected to nearly 4,800 levels taking YTD losses to 20 pct. Two key events dominated the markets this week, namely the falling rupee and ‘operation twist’ by the U.S. Fed.
India Markets Weekahead: World stocks, RBI policy expectation to dictate trend
(The views expressed in this column are the author’s own and do not represent those of Reuters)
As indicated in the previous week’s column, Nifty respected support levels of 4750/4800 and rebounded to 5000+ levels in a truncated yet action-packed week.
Next week crucial as markets at tipping point
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Nifty finally gave in to selling pressure and fell below 4,800 in spite of a fragile attempt to hold on to those levels during the week.
Political implications of Lokpal bill to weigh on markets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian stock markets continued to languish with benchmark indices down by 4 pct for the week and 13 pct for the month. Global stock markets crashed on fears of a recession in the U.S. combined with debt troubles in Europe.
India markets weekahead: High inflation, fear of rate hikes to make markets jittery
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets continued to go on a losing spree with benchmark indices in India falling further by 2.6 pct. As if the axing of the U.S. rating was not enough, talks of a France credit rating downgrade lingered, chopping around 4 pct from global indices in a single day during the week.
