Will S&P's Black Friday shocker arrest market momentum?

Moneycontrol Bureau

Rating agency S&P's decision to downgrade the ratings of nine eurozone countries could dampen the mood in the equity market when trading resumes on Monday. Indian benchmarks had a good run over the past couple of weeks, gaining over 4% on hopes of interest rates having peaked out, and industrial output picking up in the coming months.

However the focus once again shifts to the global arena - especially the debt crisis-torn eurozone - which was relatively calm in the past few weeks.

Further trouble in developed markets will influence capital flows across the globe, as investors seek out safe havens and avoid some of the more risky assets like emerging markets.

Standard & Poor