Just
when it looked like the Indian market was getting into a groove comes
yet another shocker from the offshore markets. Indian equities will face
selling pressure early on, tracking Friday’s big fall on Wall Street.
US stocks sank after the government’s jobs report re-ignited fears of
double-dip recession.
European
markets did even worse amid fresh worries over Greece’s financial
bailout. Most Asian markets are in the red, underpinned by the dismal US
jobs data. Oil futures are down while the dollar is up. Gold continues
to attract safe haven buying.
Indian
markets can take heart from the recent turnaround in FIIs flows.
Monsoon has been good over the past couple of weeks. But, inflation
remains stubbornly high, probably prompting the RBI to go for at least
one more hike on Sept. 16.
Interest rate decisions are due from a slew of central banks this week. Markets will also react to Chinese data on Friday.
US markets are shut on Monday on account of the Labour Day.
