Sunday, 12 October 2014

Market Review

Both the International Monetary Fund and the European Central Bank President
have flagged growth concerns going forward.    There is a significant surge in
volatilities across asset classes like gold, crude oil, equities, etc.    Further, 
major equity indices of the world are dangerously trading at crucial technical
levels.    This is causing investors and traders to go long on government bonds
and short on equities.

Locally,  the manufacturing output data released post market hours on Friday
remained subdued at 0.4% in August.    Markets will react to this data on Monday.
Barring Infosys results on Friday,  nothing has been positive for the Indian markets
in the week goneby.    Now,  it is only the earnings season and the results of the
upcoming assembly elections that may save Indian markets from the fate of the
rest of the world.

Sunday, 14 September 2014

Market Review

Rise in the US treasury yields is putting global markets in a tight spot.    Come
Wednesday Sep. 17th,  the US Federal Reserve Bank is going to decide on the
future course of interest rates and the mortgage backed securities & treasuries
purchase program.    The interest rate concerns in the US has caused the Asian
currencies ( particularly the South Korean Won,  the Indian INR and the Thailand
Baht ) to suffer the most.    Yet again,  the US may 'sneeze' causing the global
markets to contract flu.

Locally,  the industrial production data announced on Friday is not encouraging
either.    Given the rigidity in inflation,  the RBI will not turnaround the interest
rate trajectory in the near future.                                                                 

Going forward,  equities may continue to remain under pressure for the coming
week.    Therefore,  bulls beware.

Sunday, 7 September 2014

Market Review

Globally,  equities are in an uptrend,  particularly the US.    The US dollar has
gained remarkably on account of a rate cut from the European Central Bank and
an announcement of quantitative easing program.    The positive US economic
data is also supporting the US dollar.    That is putting pressure on gold prices.

Locally,  fundamentals for India have improved.    Positive sentiment amongst
the foreign fund managers towards India is driving Indian markets higher.
Having said that,  Nifty is showing signs of fatigue on the upside.    Barring auto
and pharmaceutical sectors,  other sectors just appear to be languishing.  
Going forward,  Nifty may consolidate at higher levels for the coming week.  

Sunday, 3 August 2014

Market Synopsis

Globally,  stock markets are in a correction mode.    US Dollar has gained against
major currencies over the last couple of weeks owing to strong economic data in
the USA.    Concerns of an Argentine debt default are weighing on the emerging  
markets.    No wonder did the currency traders turned out to be net sellers in the
emerging market funds.

Locally,  Indian markets have been languishing at higher levels without any
conviction for the past several trading sessions.    Markets will be keenly          
watching RBI's next move in its policy on 5th August.    If Friday's session in
Nifty is the harbinger of things to follow then a correction is on the anvil.

Friday, 27 June 2014

Market Synopsis

Indian markets have entered the zone of secular bull run.    In this regard,
a stable government at the center provides the necessary backbone.

However,  concerns like deficient monsoon,  the escalating crisis in Iraq
do weigh on the markets.    The prevalence of high interest rates in the economy
is another dampener.

Going forward,  markets will be mainly driven by the General Budget on 10th
July and the upcoming earnings season.