Global markets continue to anchor on central governors’ announcements for directions. This anchoring is making many market participants nervous. As results season nears its end in India, market is struggling to find any catalyst to move up. And as we know, when indices are not moving up, they are moving down. Can’t stay confused/range bound/flat or in inaction for long.
Sensex lost 1.3%, Nifty lost 1.4% and CNX Midcap was down by 1.1% this week.
Monday – Sensex down by 0.8%, Nifty down by 1.0%, Midcap down by 0.9%
Continuing weakness in rupee had its effect on investors. Investors continue to stay cautious as September IIP and October retail inflation numbers are due for release tomorrow.
Tuesday - Sensex down by 1.0%, Nifty down by 1.0%, Midcap down by 1.0%
Although market consensus indicates a recovery in IIP at 3.6% in September vs. 0.6% in August, it is the retail inflation, which is causing nervousness among the participants. Street expects CPI for October to be at 10% vs. 9.84% previous month. Also, car sales, considered by investors as a signal of consumer sentiment, provided little cheer with domestic sales declining 3.9% in October.
Wednesday – Sensex down by 0.4%, Nifty down by 0.5%, Midcap down by 0.7%
Street was little disappointed as IIP numbers came in lower at 2% for September vs 3.6% consensus while CPI was on higher side with rise of 10.09% in October. Investors have again started speculating a rate hike in coming December 18 meeting of the RBI.
Thursday – Sensex up by 1.0%, Nifty up by 1.1%, Midcap up by 1.5%
Markets cheered the Janet Yellen’s statement that US economy is still underperforming and Fed will continue its liquidity support for some more time. Janet Yellen is set to replace Ben Bernanke as Federal Reserve Governor soon.
On domestic front, Raghuram Rajan again sprung back to action and soothes the nerves of the investors with announcement of 8,000 crores of bond buying program to infuse liquidity in the system.
Friday – Markets closed on occasion of Muharram
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