We are likely to witness an opening carnage today on the back of another round of vicious sell-off across global markets. Stock markets across the globe have taken a severe beating amid mounting fears of a world-wide recession. Even the commodities have not been spared, with oil prices plumbing to a 16-month low, gold slipping to one-year low and a key commodities index hitting a four-year nadir. The yen is gaining ground against the dollar and euro, suggesting a reversal in the so-called carry trades.
The easing of ECB norms and the crash in crude prices should have brought cheer. Alas, we remain at the mercy of global markets which promise new lows for our indices today. Investors, who have been waiting with cash can look to make some deployment today. And don't forget to get back to cash during a bounce back in the coming days.
