Markets Would Remain Volatile

The Indian markets would remain volatile as today is the October series expiry. Market would also take cues from global markets as yesterday Indian markets were closed account of Dussera. Further there is minor confusion among the traders and Investors, this is after as per NSE (http://www.nse-india.com/products/content/derivatives/irf/mrkt_timing_holidays.htm) we have holiday on Friday (on account of Bakri Id) while as per BSE (http://www.bseindia.com/markets/MarketInfo/listholi.aspx) we are working on the same day. Nevertheless we would be updating on the same and hence would advise our readers to be anxiety free.

Further according to media reports, The Union Cabinet is likely to be reshuffled this Sunday (October 28). Speculation has been rife about a possible reshuffle in the wake of the exit of Trinamool Congress ministers and DMK representatives A Raja and Dayanidhi Maran in the last two years. Despite the cabinet reshuffle we at Dalal Street Investment Journal continue to believe that government’s actions for reforms would continue and markets would continue to hold its positive trend.    

US markets were also trading on a volatile note after Bloomberg reports which said that U.S. stocks advanced, sending the Standard & Poor’s 500 Index up from an almost seven-week low, amid signs a slump in China’s factory output is easing and as sales of new American homes rose. Further we have Elections in US probably in the first week of November which would keep the developed markets on their toes.

European markets closed higher yesterday after Bloomberg reports which said that European stocks advanced, after yesterday tumbling the most in four weeks, as technology companies rallied, outweighing worsening economic data from the euro area.  SAP AG gained 4.6 percent after the world’s biggest maker of business-management software raised its full-year revenue target as license sales beat estimates.

Asian markets yesterday closed on a mixed bagged with Nikkei closed the day lower 0.67 per cent while Shanghai and Hang Seng closed after the Bloomberg report which said Asian stocks dropped, with the regional benchmark index heading for its fourth straight loss, as the global economic slowdown crimps corporate earnings and after commodities erased this year’s gains.

The rupee has been appreciating since last one month as it has come down from the levels of sub Rs 56 per dollar to the Rs 53.5895 against a dollar which is good for our economy. Going ahead, we believe that the government which has put an end to the policy paralysis will help the rupee to appreciate against the dollar. Brent crude is trading at USD 108 per barrel while the WTI is trading at USD 85 Per barrel which has seen some southward movement which is good for the Indian economy.

Further companies like Kotak Mahindra, Bajaj Electrics, Ajanta Pharma, Asian Paints, M&M etc would announce their September quarter numbers which may affect their share price movement.

In conclusion we believe the market will remain volatile and we advise our readers to play with cautious.