In this edition of Big Story, Moneycontrol's Sakshi Batra decodes the latest wholesale price data released by the government.
The global weakness is mainly due to the pressure in the German banking sector which led to a decline in Dax by 2 percent, Nick Parsons, National Australia Bank says. Also the upcoming US presidential debate and the OPEC meet have also caused jitters among investors.
Madhu Kela of Reliance Capital, who called the bottom of the market around its 6,800 lows in February, added that near-term returns, especially in stocks that have bounced sharply since (such as public sector banks), may be subdued.
The wholesale price index (WPI) for May came in at 0.79 percent year-on-year, compared to 0.34 percent in April, showing the second straight month where signs of industrial inflation have emerged, following 15 months of declining prices.
A clear recovery economic and earnings is finally visible and growth is at an inflexion point, says Ridham Desai, Head of Equity Research & India Equity Strategist at Morgan Stanley.
Billionaire financier George Soros sounded downbeat about the global economy. He said it was going to be a difficult year and that the balance was to the downside
Wholesale inflation, as measured by the wholesale price index (WPI), remained in the negative territory for the 14th straight month but the intensity of the contraction eased, with December WPI coming in at -0.73 percent YoY, versus -1.99 percent.
The country's wholesale inflation, which has been in negative territory for thirteen months now, eased a bit, with the wholesale price index coming in at -1.99 percent in November compared to -3.81 percent in October and versus a forecast of -2.59 percent.
Earlier on Friday in a CNBC exclusive, Federal Reserve Vice Chairman Stanley Fischer said it was too early to tell whether volatility in the market made it more or less compelling to raise rates in September.
The Chinese economy faces a 90s Japan-style deflation but one factor will help it.
The recent measure by the Chinese government to devalue its currency was leading to a global fear of a competitive devaluation race. As well, the Fed's expected exit from its zero-interest rate policy is leading to an outflow from emerging markets.
Roads secretary Vijay Chhibber says 8000 km roads were awarded last year, and this year the aim is to award 10,000 km. The strategy, going ahead, is to award atleast 10,000-12,000 km every year, he says
Overall it will be the ninth month of decline that will come through if in case it is in deflation territory and the core inflation is expected then to decline for the fifth straight month.
Kevin Lai, chief economist, Asia ex-Japan, Daiwa Capital Markets, says over the last six months, the big picture in China has been deteriorating. The country is fighting against money outflow, deflation, etc.
The current situation in China requires more reforms, more easing. This has the potential to lead to another leg of depreciation in currencies in the world, leading to a further fall in commodity prices and ultimately deflation, says Andrew Holland, CEO of Ambit Investment Advisors.
Gautam Chhaochharia, head of India research at UBS Securities is bullish on Info Edge in the e-commerce space and likes the auto anciallary space as a whole. He feels auto ancillaries may be a better way to play the auto sector for now.
In an interview to CNBC-TV18‘s Menaka Doshi, Nobel Prize Winner Christopher Pissarides, spoke about how the ECB can stave off the deflation threat that looms over the eurozone.
Desai expects corporate earnings growth to pick up after the next couple of quarters. He is bullish on capital goods, banks and consumer discretionary stocks like autos
As the world economy steers over into the new year, one of the its most worrying spots remains the Eurozone. To discuss prospects for the region, as well as for other leading economies such as the US and China, CNBC-TV18‘s Latha Venkatesh spoke to Lord Adair Turner.
Normally, low oil prices are a boon to the economy and it may lead to tax cut for consumers, etc. But there are a few upsetting factors this time around, said Antonie Hallf, head-oil industry at IEA.
Geoffrey Dennis of UBS says even emerging markets saw significant correction and from a fundamental point of view, it makes more sense to look for buying opportunities.
Lord Adair Turner goes on to analyse India and says the crucial thing is to look at the degree of reliance on short-term debt and that is something that RBI governor Raghuram Rajan has commented on within the nature of financing of current account deficit (CAD).
The one question riding every mind on the battered global markets today is whether all the bad news is already factored in or if are we slipping to the bottom. Taking away the comfort, Falguni Nayar, managing director of Kotak Investment Bank says the global markets are all headed to a precipitous fall ahead.