Experts believe the market may correct further due to Chinese fall. According to them, key triggers for the near term are China, Greece and April-June quarter earnings that will kick off by TCS on Thursday.
Equity benchmarks crashed following the equity rout in China on Wednesday, losing 1.7 percent dragged by banking & financials, metals and auto stocks. The broader markets, too, caught in bear grip. The 30-share BSE Sensex lost 536 points intraday, before closing at 27687.72, down 483.97 points. The 50-share NSE Nifty shed 147.75 points to 8363.05 after seeing an intraday low of 8341.40. The BSE Midcap and Smallcap indices slipped 1.3 percent each. Two shares declined for every share advancing on the Bombay Stock Exchange. Experts believe the market may correct further due to Chinese fall. According to them, key triggers for the near term are China, Greece and April-June quarter earnings that will kick off by TCS on Thursday. Tirthankar Patnaik, India strategist at Mizuho Bank said the market hasn’t priced in the interim volatility that one is seeing from the Chinese market. He feels the Nifty could go down to 7,900 levels if this volatility continues. "People have been focused very hard on Greece over the last few weeks even as China collapsed in their own neighbourhood, We believe that Chinese markets could go down further despite measures announced by the China Securities Regulatory Commission (CSRC) frequently. Therefore downside risk remains for the Nifty," he reasoned. Shanghai closed 5.9 percent down. The index rallied 150 percent in a year before falling 30 percent in last one month. Chinese regulator said markets are in panic mode. In a unprecedented move, more than 40 percent of listed companies voluntarily suspended trading of their shares in the first ten minutes of trade. Ruchir Sharma of Morgan Stanley told CNBC that there was no fundamental basis for massive rally in China. Market valuations in China need to correct more before they become a buying opportunity,
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Equity benchmarks crashed following the equity rout in China on Wednesday, losing 1.7 percent dragged by banking & financials, metals and auto stocks. The broader markets, too, caught in bear grip. The 30-share BSE Sensex lost 536 points intraday, before closing at 27687.72, down 483.97 points. The 50-share NSE Nifty shed 147.75 points to 8363.05 after seeing an intraday low of 8341.40. The BSE Midcap and Smallcap indices slipped 1.3 percent each. Two shares declined for every share advancing on the Bombay Stock Exchange. Experts believe the market may correct further due to Chinese fall. According to them, key triggers for the near term are China, Greece and April-June quarter earnings that will kick off by TCS on Thursday. Tirthankar Patnaik, India strategist at Mizuho Bank said the market hasn’t priced in the interim volatility that one is seeing from the Chinese market. He feels the Nifty could go down to 7,900 levels if this volatility continues. "People have been focused very hard on Greece over the last few weeks even as China collapsed in their own neighbourhood, We believe that Chinese markets could go down further despite measures announced by the China Securities Regulatory Commission (CSRC) frequently. Therefore downside risk remains for the Nifty," he reasoned. Shanghai closed 5.9 percent down. The index rallied 150 percent in a year before falling 30 percent in last one month. Chinese regulator said markets are in panic mode. In a unprecedented move, more than 40 percent of listed companies voluntarily suspended trading of their shares in the first ten minutes of trade. Ruchir Sharma of Morgan Stanley told CNBC that there was no fundamental basis for massive rally in China. Market valuations in China need to correct more before they become a buying opportunity,
For More Detail Visit -- http://www.allianceresearch.in/
Or Call on -- 0761-4032175, 9993716323
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