A week of continuous negative news turns the market down. Power struggle in Karnataka elections, Currency hitting a new low of 68.12 to the dollar. RBI intervention to strengthen the Rupee. Flight of capital and falling SIP’s not a good sign to the current situation. Crude oil going higher, touching $80 has brought 50B$ increase to our import bills.
Weak results season, baring a few prominent names companies reporting tepid numbers. Public Sector Banks have lost more than 43K crores in FY17-18, almost 50% of the stimulus goes off in losses. Stock valuations tumble.
Markets needs to touch 32000 on SENSEX before it can gain good strength, it can take a couple of months before strength comes to the markets. No need to panic, volatility is the general tendency of the markets. FY18 can be a flat year for the markets, while we can see bounce back at the end of FY18.