Mounting evidence of an economic slowdown have resulted in a short supply of confidence and conviction. If the GDP data was not enough, reports now show weakness in the core sector and manufacturing. Auto sales have not been spectacular either. It remains to be seen how the RBI reacts to these data points on June 16. Before that we will have to contend with the EGoM on fuel prices on June 9, unless it gets postponed again. April IIP data will be out on June 10 and May inflation will be announced on June 14.
For today, we expect a weak start on the back of a worldwide selloff in equities and fall in commodities. Hopefully, there might be some relief later in the day, especially if offshore markets recover. FII flows have been positive but volumes have been tepid.
US stocks slumped in the wake of grim data on factory output and private payrolls. Manufacturing PMI reports from other parts of the world have been anything but inspiring. Greece has seen its debt rating slashed by Moody’s as trepidation continues over its precarious fiscal health. Friday’s US jobs report will now be closely watched.
