Today, we see the market opening in the red on the back of overnight losses on Wall Street. A disappointing outlook from FedEx added to concerns over unemployment. Asian markets too are all down. Stocks fell in Europe too following Greece’s downgrade.It’s raining holidays in the coming weeks and the bourses have decided to wish investors Happy New Year by remaining closed on Jan 1. So far the plan is to usher in 2010 by starting at 9 am on Jan 4. But all this is few days away.
Trading has been anemic over the past 2-3 weeks. Globally too, stocks have struggled as the dollar has been inching up. Sovereign debt concerns have added to the pressure. Economic outlook remains murky though overall the world seems better placed. For India, the immediate worry is the soaring food prices. That rates will rise and ‘exit’ strategies will gradually be executed is a given. Expect some action from the RBI in the coming days. Given this backdrop, we would urge some caution.
Trading volume could take a hit in the next few weeks due to a few holidays.
