Comments
It appears there is no respite for the domestic markets from bears onslaught. The new week is likely to open on a negative note for domestic markets, as global stocks are in downbeat.
SGX Nifty at 17,530 indicates another 30 points gap down opening for Nifty, as Nifty futures on Friday closed at 17,560.
Lack of positive trigger
According to analysts, the sentiment is bearish despite the market is at oversold condition. But to bounce back, the market needs fresh triggers, they added.
“In the near term, we expect market to consolidate in the absence of any fresh trigger,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Analysts fear, the US will remain firm in taming inflation by keep raising the interest rates, given the hawkish comments from Fed officials. This will result in heavy selling by foreign portfolio investors, they further said.
Joseph Thomas, Head of Research, Emkay Wealth Management, said: the major factor that has been causing a bend in the river is the avalanche of economic data, mostly from the US, hinting that the economy might be stronger than one thinks, inviting an inference that there could be further policy tightening in store.
“These pressures are not going to go away soon, and could dominate discussions and markets for another quarter or so. It looks like the factors responsible for the current weakness still has an upper hand.” he added.
Asian stocks down
Asian stocks are down following a sharp correction on Friday as the US stocks tumbled on inflation rate.
“US stocks are selling off after the Fed’s preferred inflation reading comes in scorching hot, prompting bets that they will hike rates over the next three meetings. Some traders are also worried that they may need to take rates well above 6 per cent,” said Edward Moya, Senior Market Analyst, The Americas OANDA.
According to VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, last week bond yields in the US continued to rise in anticipation of the Fed turning more hawkish in the context of the slow disinflation in the U S.
“Rising rates in the US might lead to more capital outflows from emerging markets,” he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.