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Monday, February 17, 2014

Markets Struggle Inspite of UPA’s Vote-On-Account


Despite a strong start to the week, Indian equity markets continue to exhibit a listlessness that has become characteristic of the entire month of February. Given the aversion to any fresh commitments from FIIs or Domestic investors, the activity levels in the market continue to remain tepid – with only a smattering of the mid-caps seeing some interest. The ongoing Vote-on-Account by the UPA Government also seems to have got discounted by the market as a non-event as the range-bound movement of the indices indicate. Post the earnings announcements by almost all frontline Companies, the market seems to be in the mood to digest the numbers before it takes further cues from international trends, particularly the behaviour of the ETFs that are yet to make a comeback into Indian equities in any meaningful way. The flow of policy announcements from the Government too has been reduced to a trickle as the electoral battle starts to see some firming up. Technically, the market could test higher levels of 6200 in the interim but certainly does not demonstrate the strength to hold onto higher levels, and could find itself giving way to the sub 6000 levels sooner than later! Booking profits and sitting on cash at higher levels would be prudent enough for the patient long term investors.

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