Today,at the risk of sounding repetitive, we expect another weak opening for Indian stocks due to the global rout and the worsening macro-economic picture. The deepening financial and economic malaise across the globe will continue to pinch India and India Inc, notwithstanding the repeated assurances of the Finance Minister about the healthy state of affairs. The mayhem was no less severe in Europe, where key indices fell by 4-5%. This morning's scene across Asia is anything but promising. The major indices (barring China) are down 3-5%.
It’s not the season to give reasons. A rare positive opening in recent times ended in a whimper for the bulls on Wednesday. Blame it on fresh weakness in European markets. The Sensex and the Nifty lost 1.8% each after gaining as much as 3% in the morning, as worries mounted over the impact of a chronic global recession on India.
We continue to advise extreme caution at this stage.
