Spooked by the weakening rupee, rising government bond yields and ambiguity from the US Fed regarding tapering of monetary stimulus, markets extended their losing streak to the third consecutive week.
Both the benchmark indices, the Sensex and the Nifty, closed 182 pts and 61 pts lower at 20,217 and 5,995. After a big bang opening at the start of the week ended on the back of reforms in China, markets fell steadily for the remaining part of week to end with losses. With rupee showing signs of weakness again, all eyes are on FIIs.
Track developments on political front. Results of assembly elections will certainly have bearing on markets, say punters.
In the US, the S&P closed above 1,800 for the first time ever and the Dow Jones Industrial Average rose to a new all-time high above 16,000, a key level crossed for the first time.
Near-term direction of the global markets will be dictated by the actions of the US Fed and the impact of recently announced China’s reforms. Many believe that ‘tapering’ may occur sooner rather than later. Focus will be on F&O settlement, GDP growth estimates and fiscal deficit data.
For the week ahead, chartists predict trading range of 19,850-20.600 for the Sensex and 5,860-6,125 for the Nifty.
