Global cues, RBI rate hike moves to set D-Street agenda
The market is looking towards the government for clear directions on the much-awaited financial policy initiatives to drive bourses, which will also benefit from the decline in crude prices and a projected above-normal monsoon, say experts.
"The market trend this week will be defined by global market events and Indian government policy (direction). We expect some bargain hunting in the market after the Sens*x declined by 500 points in the past couple of weeks," said Parag Doctor , Motilal Oswal Securities' Associate VP Senior Analyst, Technical-Equities.
The BSE's Sens*x last week lost 2.17%, or 398.01 points and closed at 17,870.53 on Friday, in step with weak global markets that tumbled on fears of a slowdown in global economic recovery on concerns of the Greece NEW DELHI PTI The market is looking towards the government for clear directions on the much-awaited financial policy initiatives to drive debt crisis and disappointing US data.
The RBI's decision to hike key interest rates by 25 basis points to tame an intractable inflation also affected the sentiment at home.
"Apprehensions regarding a slowing US economy and monetary tightening across emerging markets give a fairly challenging scenario for equities," said Amar Ambani, IIFL-India Private Clients Head of Research. The government, which seems to be in a limbo over major policy decisions, is another irritant. "A big problem for India is that the government machinery seems to have gone into deep slumber. The UPA-II needs to get cracking on the policy front to shore up investor sentiment," Ambani said.
The government is in the process of making important changes in tax laws (introduction of DTC and GST), besides important bills on insurance and pension sector have been introduced in Parliament. It is also considering liberalising FDI rules to attract more long-term investments in the country.
Source: https://economictimes.indiatimes.com/markets/analysis/global-cues-rbi-rate-hike-moves-to-set-d-street-agenda/articleshow/8919386.cms
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