expects the market mood to remain pessimistic next week. He feels that the
lower-than-expected Q3 results escalating euro-zone crisis and tensions with
Iran could dampen the Indian market outlook.
Sensex and Nifty ended the week at
16,155 and 4,866 gaining 287 and 112 points, respectively, led by positive
domestic economic data and global cues, which saw an across board buying by
We expect the market mood to remain
pessimistic as institutional investors would be closely watching Q3 2011
corporate earnings, which would give them an indication on the growth for the
year 2012. Moreover, the euro-zone debt crisis seems to be worsened after
France, Austria and Italy were stripped from AAA credit rating by S&P, with
Spain being said to be next on line. Reports that a group of private lenders
have failed to reach an agreement to trim Greece’s debt burden will further
escalate the European outlook.
On the domestic front, the current
tensions with Iran will further raise concerns of soaring oil prices. Any
positive development in the global arena or bargain buying by institutional
investors will spike short spell of rally.
To negate the current market
uncertainty, suggest your client to continue investing in equity funds through
the SIP route.
The week started off on a flatter
note following concerns over tensions with Iran and the PM’s remarks that the
economy would grow at 7% this fiscal. However, the market gained some momentum
after global rating agency Moody’s upgraded India’s short-term foreign currency
rating from speculative to investment grade, which is expected to help domestic
companies raise finances from abroad at healthier rates.
Government’s notification of 100%
FDI in single-brand retail, and hopes of a tax reform in the upcoming budget
following media reports that state governments has given their in-principle
approval to a proposed national goods and service tax (GST) boosted the market
sentiments. The domestic markets still lost its ground after index heavy
weights Infosys and HDFC reported subdued revenues and lower-than-expected Q3
The market saw a rebound led by
growth in November industrial production numbers and optimism in global cues
following successful bond auctions in Spain and Italy. Moreover, the ECB’s
decision to keep the interest rate unchanged further boosted the market outlook.