The macro-economic situation in India has not been good in the past few months. The factors like inflation, depreciation in the rupee and the global issues have led the markets into the negative region. The only good news coming in is that the rate hike is nearing an end and the rupee has deteriorated enough and it is not expected to go down further.
In the past few months inflation has been increasing and has refused to come down. The interest rates have been going on increasing and this has also not helped in the improvement of the macro-economic situation. RBI is expected to increase the rates by another 25 bps. The market has been seeing a lot of negatives and it is difficult to predict when one can expect to see a genuine bull market. The fiscal deficit has been increasing and is going out of control.
Though it was feared that the world markets would go into an immediate recession and the situation could become worse, the situation has seen an improvement in the Chinese and the US markets. The European leaders still need to do a lot of work to bring a clean solution to the problems in the Euro Zone. The only positives for the Indian investors are that the rate hike could now be expected to be reasonably positive and the rupee is expected to see some improvements from the current positions. Still the markets are expected to remain range bound between 4,700 and 5,200.
Bell The Bull says: The rupee could see an improvement from current levels