Equity market movements throughout the world though are very much integrated with each other but it is the behavior and news of U.S market that influences other global markets the most. Indian share market is not isolated from this global trend and hence the sharp fall of US market on Wednesday will certainly have its impact on Indian equity market.
U.S. stocks on Wednesday fell sharply after a two-session rally as negotiations between President Barack Obama and the Republicans to avert the U.S. "fiscal cliff" of tax hikes and spending cuts set to begin early next year appeared to stall. This failure in talk created nervousness among investors and it has its serious negative impact on the market. Retreating from a two-month high, the Dow Jones industrial average (DJI) dropped 98.99 points, or 0.74 percent, to end the day at 13251.97. The S&P 500 (SPX) lost 10.98 points, or 0.76 percent, to 1435.81. The Nasdaq Composite (IXIC) fell 10.17 points, or 0.33 percent, to end at 3044.36. However, advancing and declining issues were almost even on both the NYSE and the NASDAQ.
Asian markets have also started on a negative note as the news of failure over talks to avert a U.S. fiscal crisis hit a hard rock. Asian markets are trading lower today with shares in Japan off the most. The Nikkei 225 is down 0.85% while China's Shanghai Composite is off 0.44% and Hong Kong's Hang Seng is lower by 0.12%.
Thus is for sure that global cues are not at all positive for Indian markets today. Thus under all likelihood, the stock market in India will open in negative zone and may show initial signs of nervousness as well. But its hardly expected that the market will see a major sell-off. With government being in a mood of a range of reforms to boost the economy, the Indian market today will not see much downside. Even if there is a sharp fall, it must be taken as an opportunity to enter in the market. So, don’t buy today when the market is up, rather buy on falls and exit on rise.
U.S. stocks on Wednesday fell sharply after a two-session rally as negotiations between President Barack Obama and the Republicans to avert the U.S. "fiscal cliff" of tax hikes and spending cuts set to begin early next year appeared to stall. This failure in talk created nervousness among investors and it has its serious negative impact on the market. Retreating from a two-month high, the Dow Jones industrial average (DJI) dropped 98.99 points, or 0.74 percent, to end the day at 13251.97. The S&P 500 (SPX) lost 10.98 points, or 0.76 percent, to 1435.81. The Nasdaq Composite (IXIC) fell 10.17 points, or 0.33 percent, to end at 3044.36. However, advancing and declining issues were almost even on both the NYSE and the NASDAQ.
Asian markets have also started on a negative note as the news of failure over talks to avert a U.S. fiscal crisis hit a hard rock. Asian markets are trading lower today with shares in Japan off the most. The Nikkei 225 is down 0.85% while China's Shanghai Composite is off 0.44% and Hong Kong's Hang Seng is lower by 0.12%.
Thus is for sure that global cues are not at all positive for Indian markets today. Thus under all likelihood, the stock market in India will open in negative zone and may show initial signs of nervousness as well. But its hardly expected that the market will see a major sell-off. With government being in a mood of a range of reforms to boost the economy, the Indian market today will not see much downside. Even if there is a sharp fall, it must be taken as an opportunity to enter in the market. So, don’t buy today when the market is up, rather buy on falls and exit on rise.
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