The Indian market was spared a
rollercoaster ride on account of the holiday. There may be some adjustments to
make especially during the initial hour. In case you missed it the main US
indices had plunged ~3% on Wednesday after the yield on 10-year Italian bonds
rose to its highest levels of 7.48%. The good news is that overnight the Dow
Jones ended 113 points higher while S&P added 11 points and Nasdaq closed
in the green.
To add to the global confusions,
Standard and Poor's said that it had mistakenly announced to some of its
clients that it had downgraded France's
top "AAA" credit rating, due to a technical error.
Meanwhile, it’s a tale of two ratings
for the banking sector in India.
Standard & Poor’s has upgraded India’s banking industry on Thursday even as
Moody’s downgraded Indian banks to negative from stable, citing profitability,
asset quality and capital concerns.
Besides
the morning fluctuations, the Indian market will be driven mostly by the
factory output, as measured by the index of industrial production (IIP) and
inflation numbers.
