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Straight from the Specialists

India Markets Weekahead: Results of state elections a key driver

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(Any opinions expressed here are those of the author and not of Thomson Reuters)

Markets had been on a roller-coaster ride but closed weak for the third week in the row with the Nifty in the 5950-6000 range providing support.

A hint from the U.S. Federal Reserve on tapering its bond-buying programme was enough to spook the markets. Though this is expected in the first quarter of the new year, it remains to be seen whether chairman-elect Janet Yellen’s dovish stance would postpone it further.

Closer home, state elections kicked off with Chhattisgarh recording a 75 percent turnout in the second phase. The elections in Madhya Pradesh, Chhattisgarh, Rajasthan and Delhi will have a significant bearing on sentiment in the run-up to general elections due in May.

U.S. markets touched a new high based on favourable economic data but the euro zone slipped with PMI dropping to 51.5 from 51.9. China performed well on the back of last week’s announcement of financial and economic reforms.

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