Posted By : Kishore B.S
Hi Friends !!!!!!
“The tragedy day for Indian economy where the government and regulators became helpless” this quote aptly suits for us today since the Rupee plunged to all time low of 54.47 against the dollar inspite of the RBI intervention in selling 400$-500$ million worth in the spot market.
The hit in rupee lead to the fall in the Indian indices since the currency reflects the overall condition of the Economic strenght and growth which now seems to be in doldrums and now given the fall there could be possibilities of the market too plunging to its lows witnessed during the month of December when Rupee was trading nearby the 54 mark which was its all time low till then and now we have set new benchmark.
The weakness that set in during the initial trading hours could not be recovered and our indices remained largely negative with no major Positive news flow, downgrades of major Companies and also the Govt on their back now. There was some hopes that we could recoup some of the losses after the European markets opened.
However, our Indices sank further along with the European markets which got off to a negative start as France’s CAC 40 plunged 1.03%, Germany’s DAX sank 0.94% and United Kingdom’s FTSE fell 0.73% lead the indian market further into red.
The top losers are reliance which hit its year low and the Tata motors fell 8%, world economies added salt on the wounds of fiscal deficit and current account deficit in India.
At current levels we have almost clawed back the 75% of the Upmove witnessed during the Jan-Feb rally and there are chances that we might see some buying emerging around the 4776-4820 zone which emerges as some cushion levels now that we have broken and closed near the 4860 support levels.
If the growth level is boosted with some incentives by the Govt current levels seem to be just the Bargain level to slowly start buying or re-entering the markets to some extent.
(Inputs: Mr. Shiv Teja, Associate & Mr. Hemanth .V, Faculty TA – Stock Market Institute, Bangalore)