Improved IIP Numbers of September - 4.8% (compared to 1.4% of August) and surprisingly 6 month low inflation numbers of 8.98% did liitle to cheer the market sentiments. Indian Stock Markets saw extreme volatility during the last week. Nifty plunged 5.47% or -162 points to end at 2810.35 and Sensex dropped by 5.81% or 579 point to end the week at 9385.
FII are still the net sellers with 746 Cr and Mutual fund houses were net buyers with 224 Cr
Crude Oil is now around $57 per barrel and inflation in the single digit will trigger, the government and RBI to take cut more rates and ease the lending rates. Private banks in India have still not called the reduction in the PLR. Hopefully with further rate cuts from RBI could trigger this.
G-20 summit at Washington is not expected to come out with some magic formula to manage the recession worldwide. Europe top countires like Germany & Italy have officially declared the recession.
Remember, we have not hit the bottom yet but buying in small chunks is advisable for those who have surplus money and the potential to hold for over one year. Invest only in large cap cash rich companies. Reason being that India would be the most lucrative market in the global economic slump and it would be even better than China. Sooner or later, Worldwide investors and Pension funds would soon realize this.
Southward journey is likely to continue in the coming week unless we see some Rate cut or CRR cut from RBI.
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