Today, we see another circumspect start, which may later turn into a lackluster day. The bias still remains negative given the fragile global sentiment.The bulls must be terrified at the prospect of further losses just as the cricketing world is stunned following the assault on Sri Lankan cricketers in Lahore. But then it could have been worse!
Though valuations have dropped to attractive levels, the complete lack of conviction and rising risk aversion will continue to play spoilsport.
Reasons are not new and have been well articulated. World economy continues to be in a bad shape, in the wake of the unprecedented financial crisis. India too is no exception, which is clear from the Q3 GDP numbers and other periodic data points. The rupee’s sharp depreciation versus the dollar has only made the matters worse for Indian stocks. A big negative fallout of this is accelerated selling by the FIIs.
