India Stocks Outlook: Down Mon on weak overseas cues

[K.Karthik Raja]

India Stocks Outlook: Down Mon on weak overseas cues
Friday, Mar 7
Indian Shares are seen continuing their downward journey
Monday, as investors are unlikely to be tempted despite cheaper
valuations.
Worries over a U.S. recession persist and investors are worried
over the possible impact on Indian markets and economy.
Investors will eye the U.S. shares closing today and Asian markets
Monday. U.S. equity futures were down ahead of jobs data for February,
due later.
We are in an oversold zone, but the fall may not stop here because
of global cues. But we may go into consolidation next week.
Investors are likely to regain confidence only if market
consolidates with healthy volumes.
The only relief has been coming from sporadic bounce-backs from
bouts of short covering, but those are shallow and lack conviction.
So far in March, foreign funds have net sold 12.86 bln rupees,
while
local funds have net sold 8.84 bln rupees.
Also troubling market watchers is the rise in headline inflation
rate to
above 5%, the highest level since May.
The biggest hurdle for any government is inflation and we're not
even taking into account the disparity between international oil
prices and domestic prices
Whether we are in a bear phase is still debatable as the economy is
showing growth and is seen strong for the next few years at the very
least.
Today, Sensex closed at 15975.52, down 566.56 points, or 3.4%,
from Wednesday. Nifty closed at 4771.60, down 149.80 points, or 3.0%.
Sticking to shares with strong growth like Tata Steel and Bharat
Heavy Electricals,ONGC in the current turbulent scenario.
Trading on NSE and BSE will be extended until Mar 18 due to the
sun outage. Trading hours will be from 9:55AM to 4:15PM with
suspension of trade from 11:45AM to 12:25PM.

K.Karthik Raja
www.kences1.blogspot.com