The market fell a bit on the Budget day and today, we have carried on the downtrend from there. It's not like a huge amount of damage has happened, but counting Budget day in, we have lost about 2.5% in two days which is not very comforting, says Udayan Mukherjee, managing editor, CNBC-TV18.
Looks like spring’s already here for the markets! Indian bourses ended a volatile session on a high yesterday. The Nifty gained 35 points while the Sensex gained over 100 points. How is trade likely to be today? Let’s check out the cues:
The market closed last week with fabulous gains that did raise some hope across the investor class. However, this week may possibly see a correction, says Udayan Mukherjee, managing editor, CNBC-TV18.
It was a sluggish start to the trading week. The Indian markets tracked their global peers and drifted into the negative territory.
As Nifty stands at the brink of breaking the physiological barrier of 5,200 levels, Anil Manghnani of Modern Shares & Stock Brokers says the next watch out levels are in the range between 5,350 and 5,450.
Andrew Holland, chief executive officer- equities at Ambit Capital tells CNBC-TV18 in an exclusive chat that now is a great time to buy Indian stocks with a two year perspective. He sees Nifty moving towards the 5200 levels in the short-term.
Both the precious metals, gold and silver, recovered today on fresh buying by stockists, driven by a firming trend in global markets. While gold rebounded by Rs 260 to Rs 26,920 per 10 grams, silver rose by Rs 500 to Rs 53,500 per kg.
Someone said clarity comes because there is confusion. This is a perfect simile to describe global markets. After a dismal start to October, the stocks shot up nearly 2% in the first week upon positive cues from Europe. Nifty too had a good week. So then, how will the domestic market open today?
Gerard Lyons, global head of strategy and economics at Standard Chartered, in an interview to CNBC-TV18, gave his views on how the global markets will perform going forward.
Gold prices tumbled by Rs 554 to Rs 27,361 per 10 gram in the futures trade today on heavy off-loading by speculators in tandem with a meltdown in global markets.
Speaking to CNBC-TV18, Vibhav Kapoor of IL&FS says that the market is currently pricing in many negatives, and therefore, the downside is limited. He expects the Nifty to find support at 4700-4800 levels.
As far as the Indian market is concerned, IV Subramanium, director of Quantum AMC, in an interview with CNBC-TV18's Latha Venkatesh and Ekta Batra said that considering the long term earnings growth and GDP growth in India, there is still lot of upside in the Indian market.
John-Paul Smith, global emerging market equity strategist at Deutsche bank too feels that India is likely to do well since it is a commodity importer and the market, relative to its own history, is now starting to look cheap. However, he warned that there is 5-10% downside for emerging markets going forward.
Markets across the world are reeling under pressure on the talks that double dip recession may hit the markets again. Cameron Brandt, director of research at EPFR Global, in an interview with CNBC-TV18's Reema Tendulkar gave his views on how the global markets will pan out going forward.
In a move that sent jitters to global markets, Standard & Poor's cut US rating to AA+ from triple-A late last week. "The political system in US is not as strong as earlier. Also, the government there proactively failed to take measures on the economy. A debate on US debt cap exposed weakening US political system," the rating agency said.
Commodities, except gold, will likely fall when markets open on Monday due to a US ratings downgrade and a worsening debt crisis in Europe but panic shall be avoided.
The dominant theme of the week is the big meltdown across all asset classes as the global financial market came to terms with lower growth in all major economies. The Dow Jones crashed nearly 5% on Thursday, Asian stocks followed suit on Friday and crude and other commodities also lost.
James Chirnside, managing director of Research & Investments at Asia Pacific Asset Management, in an interview with CNBC-TV18's Reema Tendulkar, gives his view on the global markets.
Samsung Electronics Co is relying on the smartphone market to boost group profits after its flat screen unit reported a second quarter of losses and the mainstay chip business struggled.
Weak global market and RBI's move to hike interest rates have dragged the domestic market down, said Udayan Mukherjee, managing editor of CNBC-TV18. "The breakout trade is unwinding and the market is likely see a massive downside soon," he added.
As IT bellwether Infosys announces its first quarter results today, the cabinet goes for a reshuffle and also IIP numbers come in to dominate the triggers for the market, however, CNBC-TV18’s Udayan Mukherjee says it is likely to be the global massacre seen all over the indices which will hog the limelight.
Deven Choksey, managing director of KR Choksey Securities, said that the market may not see a sharp fall, it may try and adjust between 5175-5100 kinds of levels and then probably stage a very smart recovery from there.
Speaking to CNBC-TV18, Neelkanth Mishra, head of Equity Strategy India, Credit Suisse, said that the market may continue to languish and next 3-4 quarters will be sluggish for market. "Expect Sensex to dip to 16,000 level," added Mishra.
Rajeev Malik, senior economist at CLSA, said that RBI's tone is not hawkish as in May and the central bank is likely to further hike rates in July’s policy; however, the rate hike may pause after that.
In an interview with CNBC-TV18, Suresh Mahadevan, managing director and head of India Equities at UBS Securities, gave his reading on the market and sector-specific stocks.