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Straight from the Specialists

India Market Weekahead: Economic data to provide cues

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

After a sharp bounceback last week, Indian markets were not able to hold on to the gains and corrected by 3.7 pct during the week. The overall tone remained bearish on domestic concerns revolving around the government’s inability to push through key reforms and uncertainty over the Euro debt crisis and over the outcome of the European Union (EU) summit.

Selling aggravated after the government lowered its Gross Domestic Product (GDP) growth forecast to 7.25 pct from the previous 8 pct for the current year (2011-2012) and also warned of fiscal slippages.

The euro zone crisis has been the central story of the year. The much talked about EU summit concluded with agreement among 23 of the 27 EU members to maintain tougher fiscal rules, though the UK disagreed. They have committed to fiscal austerity and agreed that sanctions against them will automatically apply if their budget deficit exceeds 3 pct. They have decided to add to the resources of the International Monetary Fund (IMF) by an additional 200 billion euros to lend to distressed European sovereigns. They also decided to accelerate the European Stability Mechanism (ESM) which has a pool of 500 billion euros which can be lent to distressed banks and sovereigns.

India Market Weekahead: EU summit, pace of local reforms to drive markets

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

After falling to a new two-year low the previous week, the markets reversed a downtrend and benchmark indices logged their best weekly gain since July 2009.

India Market Weekahead: Investor confidence, patience to be tested

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The week that went by was quite a turbulent one which witnessed the Nifty plummet to a 2-year closing low on concerns of slowing growth, weak corporate earnings and a faltering rupee. Fears of a global economic slowdown continued to weigh on Indian stocks.

With increasing dollar demand in India as foreign investors withdrew from the country, the Indian rupee witnessed a sharp slide this week. At 52.76, the rupee plunged to record lows as fears of an unstable euro zone and a gloomy global economy persisted.

India Market Weekahead: Re-test of earlier lows expected

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Initial optimism over the resignation of Italian Prime Minister Berlusconi faded quickly and there was further intensification of euro zone fear during the week. The Indian markets underperformed immensely vis-à-vis its global peers with a deep cut of 5 pct during the week. The sharp pangs of distressing high inflation, weaker rupee, disappointing corporate results and FII selling pushed the markets back to its earlier range of 4700 – 5200.

India markets weekahead: Moody’s rating, inflation to set the tone

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The week that went by was quite a turbulent one as domestic and international factors dampened market sentiments, resulting in a 2.1 pct decline in Nifty in what was a truncated trading week. We were saved from a possible savage cut on Thursday as it was a market holiday.

India markets weekahead: Bumpy road ahead, but time to top up your portfolio

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The near 8 percent October rally threatened to fizzle out as the Greece drama drove trade for virtually the whole of last week, keeping markets volatile. The initial exhilaration surrounding the euro zone bailout plan faded after the Greek prime minister called for a referendum.

India markets weekahead: New range for markets but scepticism abounds

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(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.

India markets weekahead: Await breakout or breakdown

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(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

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(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

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(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.

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