Rectifying Indian Stock markets

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Indian Stock markets seem passing through a phase of rectification as it is believed that Indian stock markets are undergoing major directional changes which they will follow in future and are correcting themselves to trade at more reasonable and sustainable levels. 

The further more declines in market are possible as the markets have not yet found their floor at which they should be. Investors have taken away $7 billion out of global markets and countries like China, India, and Indonesia are witnessing the biggest blow of it in just one week. In the year 20011, the foreign institutional investors have sold Rs.9,339 crore of stocks as far as India is concerned.

 

Further the factors like rising inflation rate, RBI’s recent hike in interest rates, changes in the global investment climate and rising global crude oil prices due to the unstable situation in Egypt are also playing their negative role on the market fall. Thus a combination of global and local factors is affecting Indian stock markets.

The Bombay Stock Exchange benchmark Sensex had fallen by over 10.6 per cent in the month of January. In the first week of February also, the downfall continued with the index shedding over 441 points in the last session on Friday.


The experts believe that the markets will continue to be volatile for a while till global liquidity and commodity prices settle in at some level.

The next few weeks will be very crucial for the investors to see whether the markets will consolidate around the current levels or they further go down to rectify itself more. The announcement of industrial growth data in next week may give some relief to the markets and investors.


 

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