Indian markets fell throughout the week with the Sensex and Nifty going down by 398 and 119 points, respectively, from last week’s close. Swapnil Suvarna suggests that you recommend your clients to stay the course by staying invested in the market.
This week the Indian market started on a flat note, finally ending the week dipping in red. The week ended with the Sensex and the Nifty settling at 17,871 and 5366, down 398 and 119 points respectively from last week’s close. The market settled southbound amidst high degree of volatility, against the backdrop of domestic economic uncertainties along with signs of a global slowdown.
As per market expectation, the RBI hiked the short-term lending and borrowing rates by 25 basis points each, for the tenth time since March 2010. However, the bond yields and the swap rates did not throw out any surprises in its trend as it had already factored in the 25 basis point hike.
Though there could be small rallies at regular intervals, we expect the market to continue remaining bearish, amidst global worries arising from fears of the debt crisis in Greece spreading to other countries in Eurozone and also domestic economic uncertainties.
However, we suggest your investor to increase systematic investment in quality equity schemes for long term gains and also start investing in short term debt funds to capture the benefits of the rate hikes.
