Posted By : Kishore B.S
The markets remained largely range bound and hovered between 4889-4836, indicating lack of investor confidence and dilemma in the minds of investors and traders alike. Though the Rupee provided some support to the markets by appreciating to 55.35 levels an appreciation from the lows witnessed from the 56.25 mark made day before yesterday yet the markets were on tenterhooks.
Today also being the weekend and Rumours of Greece withdrawal from the EU and Rollback of some Hike in the Petrol prices made also impacted the markets to some extent. Though there has been clarifications from the OMCs that the review would be made only on 1st June during the fortnight review period yet the market is expecting it sooner during the start of next week ahead of the Bandh called by various parties to Oppose the Govt move.
The world markets also reflected similar sentiments as witnessed in India which though positive yet lacked the confidence due to the impending Greece outcome during the weekend. If the Greece decides to exit the EU, most of the Financial Institutions would be in doldrums and the Global markets could witnessed financial turmoil similar the one witnessed post Lehman collapse.
On the brighter side people are expecting another round of LTRO as a respite to face any eventualities of the GREEK exit which could bolster the sentiments around the Globe and bring back some cheer in the EMs also. Since the outcome is uncertain it would be idle to wait and watch the outcome as to how the markets would react accordingly in the week to come ……..
We will also have to wait and watch the fuel price news, as the OMC’s are mentioning about the possible price cut if the Dollar and Crude prices remain stable.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)