The week saw an increase over the Nifty of more than 5% among st the developed bullish wave around the global markets. The remarkable recovery that has been observed over the world markets seem to suggest the stability of the US as well as the European Markets. The focus seems to have shifted more towards the quarterly earnings season which is right ahead. However our markets as well ass the major stocks seem to be vulnerable with all the news coming from the European markets.
The Sensex gained 850.35 points to close at 17082.89, and the Nifty 244.25 points to close at 5132.30. However, Investors remain wary of the mid-cap and small-cap shares, with the BSE Midcap (+4%) and Small Cap (+3%) indices rising less than the main indices. August IIP of 4.1% came out which was disappointing, and way below estimation of 5%. The only saviour if any is that signs of a slowdown could prompt the RBI to pause interest rate hikes. Inflation has remained stubborn and rose to 9.72% in the month of September, compared to 9.78% in the last month. But, this could play a hindrance to RBI’s resolve for not hiking the interest rates on October 25th in its Credit Policy.
Bell the Bull says: Although the ever so unpredictable markets have performed better than last few weeks the IIP numbers and the Inflation seems to play a major blockade in improving the economic scenario.