The much awaited event of the Quarter was done today, it has been a long expected and looked upon event, since the numbers to be announced had the potential to Determine the quantum of the rate cuts to be announced by the RBI on the 18th of June against the backdrop of deteriorating growth and stagflation.
The numbers announced back above the market expectation at 7.55% against the 7.4%. This dampened the spirits of the participants which was expecting much lower numbers for an aggressive rate cut. After the numbers were announced and the Euro markets opened our markets started their downward journey without any support all the way down to the 5050 levels.
The markets witnessed broad based selling across the sectors with the Banks and Auto stocks leading the decline. However in spite of the selling witnessed the indices held onto the 5000 mark yet again which could be the silver lining that bulls have not yet been ruled out of the flavor.
Tomorrow being the weekend ahead of the RBI meet on Friday lot of volatility cannot be ruled out. Also the numbers and news emanating from the Global space would largely influence our markets due to the impending GREECE, SPAIN and Euro bailouts and other bailouts too globally.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)