Today, we expect the market to open mix, as Indian equities continued to get hammered out of shape following the unprecedented carnage in the global markets and surprisingly weak domestic economic data. Globally also, all efforts to bail out the financial system remained inadequate. Back home, an aggressive CRR cut could not stop the bear onslaught.
On Friday, US markets recouped most of their early losses and ended only modestly lower. The Nasdaq actually ended in the green. The smart recovery on Wall Street could give some hopes to the bulls, after the benchmark BSE Sensex and the NSE Nifty lost 16% and 14% respectively last week. But we are not convinced that the correction has ended. The turmoil in the global credit markets is still far from over, and it's possible that FIIs would continue to stay away from emerging markets for some time to come. We continue to advise caution at this stage. Investors should stay on the sidelines till the global markets stabilise. One should not get carried away if there is any kind of a bounce back, as further selling is expected.
On Friday, US markets recouped most of their early losses and ended only modestly lower. The Nasdaq actually ended in the green. The smart recovery on Wall Street could give some hopes to the bulls, after the benchmark BSE Sensex and the NSE Nifty lost 16% and 14% respectively last week. But we are not convinced that the correction has ended. The turmoil in the global credit markets is still far from over, and it's possible that FIIs would continue to stay away from emerging markets for some time to come. We continue to advise caution at this stage. Investors should stay on the sidelines till the global markets stabilise. One should not get carried away if there is any kind of a bounce back, as further selling is expected.
