Swapnil Suvarna expects the markets to continue to remain weak and suggests that the best way for your investors to beat these uncertainties is to keep investing in good quality equity schemes through SIP
As expected the domestic markets witnessed much more volatility during the week 11 July to 15 July and ended on a negative note. The Sensex and Nifty ended the week at 18,562 and 5,581 declining 296 and 80 points respectively.
The week started off on a negative note on back of worries on global growth. These worries came from slowdown in jobs growth in the US, steep rise in Chinese inflation to 6.4% for the month of June and the European sovereign debt crisis threatening to extend on to Italy and Spain. The markets further slipped downwards following slower than expected industrial output numbers for May. Also, the increase in WPI to 9.44% in June due to price rise in fuel and manufacturing products, dampened sentiments further.
Week ahead - July 18-22
Next week, we expect the domestic markets to remain weak and range bound on concerns that rising inflation would instigate the RBI to hike rates at its monetary policy review on July 26 which could further slowdown industrial growth and weaken the investment cycle. Lower than expected quarter results and fears of deficient monsoon would also weigh on market sentiments.
Foreign institutional inflow will be crucial to buoy the market sentiments.
The best way for your investors to beat these uncertainties is to keep investing in good quality equity schemes through SIP.
