Sunday 14 September 2014

Market Review

Rise in the US treasury yields is putting global markets in a tight spot.    Come
Wednesday Sep. 17th,  the US Federal Reserve Bank is going to decide on the
future course of interest rates and the mortgage backed securities & treasuries
purchase program.    The interest rate concerns in the US has caused the Asian
currencies ( particularly the South Korean Won,  the Indian INR and the Thailand
Baht ) to suffer the most.    Yet again,  the US may 'sneeze' causing the global
markets to contract flu.

Locally,  the industrial production data announced on Friday is not encouraging
either.    Given the rigidity in inflation,  the RBI will not turnaround the interest
rate trajectory in the near future.                                                                 

Going forward,  equities may continue to remain under pressure for the coming
week.    Therefore,  bulls beware.

Sunday 7 September 2014

Market Review

Globally,  equities are in an uptrend,  particularly the US.    The US dollar has
gained remarkably on account of a rate cut from the European Central Bank and
an announcement of quantitative easing program.    The positive US economic
data is also supporting the US dollar.    That is putting pressure on gold prices.

Locally,  fundamentals for India have improved.    Positive sentiment amongst
the foreign fund managers towards India is driving Indian markets higher.
Having said that,  Nifty is showing signs of fatigue on the upside.    Barring auto
and pharmaceutical sectors,  other sectors just appear to be languishing.  
Going forward,  Nifty may consolidate at higher levels for the coming week.