Markets to see volatile trade this week: Experts
22/09/2014 12:54
According to experts, stock markets may see volatile trade this week amid the expiry of the September futures and options (F&O) contracts this Thursday as traders roll over their positions. Further, markets may be witnessing some profit booking after the longest stretch of weekly increases in over two years. In the near-term, the direction of the market will depend on the RBI policy review on September 30 where the apex back may maintain status quo on interest rates, while Prime Minister Modi’s US visit will also be keenly eyed. The Governor of the Reserve Bank Raghuram Rajan last week slashed hopes of a near-term rate cut has he said that inflation remains above comfort levels. While wholesale inflation fell to the lowest level in nearly five years at 3.74 per cent in August 2014, consumer inflation, the RBI’s most watched gauge, stood at a high level of 7.8 per cent. The RBI aims to keep consumer price inflation within 8 per cent by January 2015 with the rate expected to fall to 6 per cent by January 2016. The apex bank is likely to keep its key repo rate unchanged at 8 per cent next week. Markets will be supported by the US Federal Reserve’s commitment to keep interest rates low for a considerable time even after QE ends, easing concerns over capital outflows from emerging countries. Meanwhile, optimism over the economy after the inking of US 20 billion investment by China may also support sentiment.
22/09/2014 12:54
According to experts, stock markets may see volatile trade this week amid the expiry of the September futures and options (F&O) contracts this Thursday as traders roll over their positions. Further, markets may be witnessing some profit booking after the longest stretch of weekly increases in over two years. In the near-term, the direction of the market will depend on the RBI policy review on September 30 where the apex back may maintain status quo on interest rates, while Prime Minister Modi’s US visit will also be keenly eyed. The Governor of the Reserve Bank Raghuram Rajan last week slashed hopes of a near-term rate cut has he said that inflation remains above comfort levels. While wholesale inflation fell to the lowest level in nearly five years at 3.74 per cent in August 2014, consumer inflation, the RBI’s most watched gauge, stood at a high level of 7.8 per cent. The RBI aims to keep consumer price inflation within 8 per cent by January 2015 with the rate expected to fall to 6 per cent by January 2016. The apex bank is likely to keep its key repo rate unchanged at 8 per cent next week. Markets will be supported by the US Federal Reserve’s commitment to keep interest rates low for a considerable time even after QE ends, easing concerns over capital outflows from emerging countries. Meanwhile, optimism over the economy after the inking of US 20 billion investment by China may also support sentiment.
