The markets opened on the positive note on the back of global cues where most of the Asian markets were trading in the positive zone.
However the positive sentiments were short lived since after the first hour of the trading session, the Indices slowly started drifting on the negative terrain, due to any major positive triggers and allaying the sentiments of participants about any cut in rates by Governor of RBI during its policy meet this month end.
The Axis Bank results impacted the Banking Sector due to its increase in NPAs which was above the market expectation and the participants fear that the same would spread further due to the stalling economic growth rate.
The markets drifted below yesterdays low by the end of the trading session, making attempts to close the Gap generated during the last week and given the context of the US Fed’s Chairman testimony today where the markets and global participants are eyeing widely for some stimulus measures after the dismal numbers for the 3rd consecutive month, to fuel the economy, huge volatility in the markets cannot be ruled out.
If the Speech does not give any direction the markets would fall badly tomorrow and if any positive sentiments are echoed could lead to huge positive moves the world over which signifies the speech today to be watched and awaited for….
(Inputs Mr. Hemanth.V, Faculty TA, Stock Market Institute, Bangalore)