The October heat didn’t have much
of an impact on the stock markets, as progress on the grand plan to check the
eurozone fiscal mess lifted the pall of gloom.
However, investors could be
staring at a nervous start to November on the back of a sharp fall in the US and
European indices. Barring china, most Asian markets are also in the red. The
initial euphoria over last week's euro-zone deal seems to have faded amid lack
of details on how to rein in the debt crisis. Spanish and Italian bonds have
tumbled, forcing the ECB to buy their debt.
The yen slid against the US dollar
after Japanese authorities intervened in the forex markets again. Gold and
silver futures dropped. Crude oil too declined. The latest manufacturing PMI
survey shows slower growth in China.
German retail sales came in weaker-than-expected while the Spanish economy
stalled in Q3 over Q2.
Back home too the bad news
continues, with the core sector growth dipping to a 31-month low. Concerns are
also mounting over the ballooning fiscal deficit. But results have not been too
bad and FII flows have turned positive again. The intermediate up-trend could
pick up if the Nifty sustains above 5400. The previous resistance of 5200 will
now turn into a strong support.
