Today,it seems that the adventures of the bulls are taking a backseat as investors and traders are getting inconvenient with the current state of affairs. The wall of liquidity had stood solid in recent months and pygmied the Wall of Worry. FII outflows would mean some melting all over. Don’t be surprised if you find people saying ‘we told you so’, as the market turns volatile and loses some ground. A correction has been long overdue as the key indices have doubled since early March.
The main indices are set to open lower given the weak global cues. Fund flows too have turned a little choppy off late. Technical and derivative indicators are also pointing to some cooling. Dow industrials suffered triple-digit loss after rising initially. Financials paced the fall on Wall Street and a stronger dollar battered commodity shares. Stocks in Europe closed lower in a topsy-turvy session. Asian markets are mostly in the red. All eyes will be on the RBI. The central bank may not tinker much with policy rates, but is expected to warn about rising inflation and rates having bottomed out.
The main indices are set to open lower given the weak global cues. Fund flows too have turned a little choppy off late. Technical and derivative indicators are also pointing to some cooling. Dow industrials suffered triple-digit loss after rising initially. Financials paced the fall on Wall Street and a stronger dollar battered commodity shares. Stocks in Europe closed lower in a topsy-turvy session. Asian markets are mostly in the red. All eyes will be on the RBI. The central bank may not tinker much with policy rates, but is expected to warn about rising inflation and rates having bottomed out.
