RBI announced its monetary policy - and raised the interest rates by 50 basis points. Though this was expected by the market - the guidance given by RBI that the growth rate for FY12 was likely to be 8% (against prev projections of 8.4%) and also that inflation was likely to remain high till September - really spooked the market and the index crashed - Nifty by 140 to 5569 and Sensex by 478 points to 18520.
The market seems to be now in a new low territory - there are no optimists now left in the market. The consensus (over 90%) of the analysts are predicting further fall of 3 - 4% from these levels.
Banking stocks were the worst hit - by 5- 15% in the past 4 trading sessions. Today other rate sensitive scrips Viz Auto and real estate companies also had a fall of over 3%. And the index heavy weight Reliance seems to be going nowhere - with each day talk about how less gas they are likely to produce in FY12.
All in all - it seems to be a good month to close shop and go on a vacation. The only major trigger for the market could be the election results - due after 10 days and the expected fall in crude prices to $ 100 by the end of next month (wishful thinking).
The market seems to be now in a new low territory - there are no optimists now left in the market. The consensus (over 90%) of the analysts are predicting further fall of 3 - 4% from these levels.
Banking stocks were the worst hit - by 5- 15% in the past 4 trading sessions. Today other rate sensitive scrips Viz Auto and real estate companies also had a fall of over 3%. And the index heavy weight Reliance seems to be going nowhere - with each day talk about how less gas they are likely to produce in FY12.
All in all - it seems to be a good month to close shop and go on a vacation. The only major trigger for the market could be the election results - due after 10 days and the expected fall in crude prices to $ 100 by the end of next month (wishful thinking).
hey raj
ReplyDeletewhy don't you come here then?
will you say that the market is down trended now and might stay that way for awhile at least?
bears have taken the bulls by the horn, i reckon :))
cheers
revathi