Posted By : Kishore B.S
It was just the Re, Re, Re all over the place today. Looked as though the entire investor, trading and Business Community at large were fretting over the Depreciating Rupee helplessly with any Hope of rescue by the Concerned Authority.
The Ruling party has been busy from the last 2 days celebrating their successful 3 year stint at the Center, at a time when our Markets are in Doldrums along with the Economy and the larger section of the Population.
The markets opened on a negative note today almost near the support zone of 4800 and bounced to some extent to almost flat levels but the rally failed to sustain after the Rupee trudged above the 56 mark with no support emerging from any corner of the Globe and Domestic front.
The Indices are back to the recent lows witnessed around the 4760 mark now and given the Economic and Global events the lows witnessed during the months of December of 4600 mark seems not to be far behind now. Though todays session remained largely volatile sparing some thought among the investors that some support might be emerging around the 4800 mark yet this seems unlikely in the days to come.
Though we have avoided to witness further bottoming today yet with the depreciating Rupee and deteriorating Global Scenario we might soon further drift down unless some positive news flow from the Domestic Front emerges.
Today also marks an important day with the EU meet and its likely outcome could provide the direction to the Markets tomorrow. Also the Hike in Petrol Prices by Rs. 7.5 per liter also could trigger some rally in the OMC stocks tomorrow.
With this hike the Govt has show some response to much called voices of cutting deficit but the failure to rise the Diesel prices is something that would have really mattered since they have been denting the Exchequer more than the Petrol Prices.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)