The last week at the markets the scene was haywire, with lots of news pouring in and making the investment decision more confusing. Reactions came from every corners to the RBI’s hike of interest rates which was also expected from the markets. The markets to begin with started with a plunge but later recovered drastically. However it gave a moderate rise closing at the end of this Friday.
The double digit inflation numbers which have been a trouble for the markets is still here and is among the major concerns for the economy as a whole. The IIP numbers came in this Friday which was at its two year low of 3.3% which is way much lower than 8.8% which was recorded last month. The primary reason for these numbers was the result of week capital, manufacturing and mining sectors. The currency updates saw rupee touching Rs.48.02 per dollar which is a drop of 8.7% from the lows of this year.
Another news which brought disappointed reactions from the automobile corners was yet another increase in petrol prices which made petrol Rs.3.14 more dearer.
However among the news pouring in the week was not that volatile as it would have been expected. Closing at a minimal gain of 0.3% over the week on Nifty and a 0.2% gain over the Sensex one would have expected much more dramatics from the markets last week.
Bell the Bull says: The whole scenario looks gloomy and the index tends to slip on either side with any positive or negative news coming in maintaining the high level of uncertainty among the investors.