Don't expect Fed to hike rate this year, buy on dips: Experts

Anyone who still thinks the Federal Reserve is going to raise rates this year should think again after the latest US GDP data, Christopher Wood of CLSA says, adding the most striking feature is the continuing weakness in private sector investment.

Real private non-residential investment declined by 2.2 percent QoQ in Q2CY16, after falling by 3.4 percent QoQ in Q1CY16.

The result is that real GDP growth slowed from 1.6 percent YoY in Q1CY16 to 1.2 percent YoY in Q2CY16. But perhaps more significantly nominal GDP growth also decelerated from 2.8 percent YoY in Q1CY16 to 2.4 percent YoY in Q2CY16, the slowest rate of nominal growth since Q1CY10, Wood says.

Meanwhile, in India, Laurence Balanco of CLSA says the Nifty continues to hesitate at resistance provided by the upper boundary of the newly formed uptrend channel which coincides with the July/October 2015 highs.

There are short-term signs of slowing momentum which at some point should lead to a correction back to the 50-DMA and lower boundary of the uptrend channel, currently at 8,238-8,330. Such a move should be seen as a buying opportunity, Balanco feels.