Santosh Nair, Editor, Moneycontrol sums up the week’s market action and shares insights on what to keep an eye on.
The debt market is still reeling from the defaults by IL&FS that has raised concerns about a possible liquidity crunch in the system. This has in turn put stock prices, especially NBFCs, under pressure.
High crude oil prices and a weak rupee also remain an overhang. Foreign Institutional Investors (FIIs) remain net sellers. A rate hike by the US Federal Reserve was difficult for the markets to digest.
The threat of contagion is looming over investor sentiment. Will the bears continue to hold the market in a tight grip or will there be a relief rally in the week to come?