Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: form 3cd :: ACCOUNTING STANDARD :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: TDS :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: cpt :: articles on VAT and GST in India
« Markets »
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?
 Sebi mulls allowing foreign VCs in infra investment firms

Crude, inflation to hit market
June, 09th 2008

Investors are preparing for more pains as the new trading week begins on Monday. While the record high crude prices and rising inflation will weigh on the market when trading begins, what is most disturbing for investors is the sharp decline in leading US indices on Friday. In addition, sensex's 5.2% loss last week will affect investor sentiment, market players said.

On Friday, spooked by a multi-year high unemployment rate in the US, combined with crude oil prices nearing the $140-per-barrel-mark, the Dow Jones lost nearly 400 points (3.1%).

The other two leading indices Nasdaq and S&P 500 too ended around 3% down. And most Indian ADRs (American Depository Receipts) listed on US bourses too showed sharp declines. Market players feel the decline in US indices could severely affect trading sentiment across Asia, including India, when markets open on Monday morning.

In India, foreign funds could again start selling in large chunks, institutional dealers said. FIIs (foreign institutional investors) have already taken over $4.2 billion out of the Indian stock market and dealers feel the outflow could continue till global markets stabilise.

Market sentiment will also be hit by rising inflation, the latest figure pegging it at 8.24%, and the government's ineffectiveness in curbing it. With the government finally deciding to raise petro-product prices after postponing it for sometime, the rate of inflation, for the week ended June 6, is expected rise further. The prospects of further rise in inflation rate is expected to hold back investors from buying aggressively in the market, participants said.

Technically, chartists and analysts said, the sensex could soon go below the 15,000 mark and go further down. Also a look at the weekly volatility in the sensex, measured by the difference between the week's high and the low, shows that it had gone up to as high as 1,319 points, almost close to its March levels.

Compared to this, the week before the volatility was 470 points. Market analysts said higher volatility indicated investors' impatience with the market. And in case of a sliding trend, this could be a signal that even those with greater holding power and withstand losses, might step in to sell.

And in case RBI decides to hike key rates to rein in inflation, it could take further toll on market.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions