Stock markets may remain subdued this week: Experts
Quotes

Stock markets may remain subdued this week: Experts

Last Updated: Sunday, June 2, 2013, 11:58
 
 Comment 0
 
Stock markets may remain subdued this week: Experts
New Delhi: With the earnings season nearing to a close, stock markets would await for signs of monsoons and development in global markets for the near-term, besides trading in equities would largely remain subdued this week, experts said.

"Correction is inevitable, led by profit booking in rate sensitive stocks. Stocks that had run up purely on expectations of rate cut will certainly take the momentum away," said Vikas Jain, Founder, Aditya Trading Solutions (ATS).

Experts said that stock markets are likely to see sluggish trading amid RBI's poor inflation outlook and GDP falling to decade's low.

Rupee movement and arrival of monsoon would be key for near-term direction, they noted.

"Markets last week were spooked by weak Q4 GDP estimate, decline in rupee and weak global markets.

"With earnings season nearing end, markets would await for signs of monsoons and development in global markets. We recommend investors to accumulate stocks having reasonable valuations, strong balance sheet and ethical management across sectors," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.

Another analyst, Motilal Oswal, CMD, Motilal Oswal Financial Services said: "The main fears in the mind of investors are ballooning current account deficit and how soon can the interest rate come down."

Meanwhile, economic growth rate slipped to a decade low of
5 percent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors.

Belying hopes of further rate cuts, the Reserve Bank Governor D Subbarao's comments that there are still upside risks to inflation spooked stock markets. Additionally, RBI's concern about widening country's current account deficit amid rupee falling to over 10-month lows, also put pressure.

The BSE benchmark Sensex saw a flat trading last week, gaining 0.28 percent to end the week at 19,760.30.

PTI



First Published: Sunday, June 2, 2013, 11:58


Comments


comments powered by Disqus
PM Narendra Modi in France
PM Narendra Modi in France
PM Modi`s Make in India push in Germany
PM Modi`s Make in India push in Germany
Renault Lodgy MPV
Renault Lodgy MPV
Apple Watch: Worldwide preview
Apple Watch: Worldwide preview
2015 New York Auto Show
2015 New York Auto Show

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved