India is a diverse country having different geographical and topography regions. No wonder it is known as a sub-continent. So much so that when there are talks of a below normal monsoon we have already experienced floods in Assam. Nature takes its own course and we can do only that much and no more. The more we conserve and preserve our environment, the more we stand to gain. However the final word will always be Nature’s.
The markets have a mind of their own and the weakness continues on some or the other ground. FED meets on Tuesday and Wednesday this week and it is now widely believed and expected that in the greater interest of the global markets, rates would be kept unchanged. Interest rate rise would be postponed to probably the next meeting to be held in the beginning of August.
Economic date saw IIP for the month of April rise to 4.1%. This was quite unexpected but augurs well for the economy. Consumer inflation moved up from 4.87% in April to 5.01% in May. Monday sees data on wholesale inflation and trade data to be released.
In the course of last week’s fall markets made new lows for the year and are now negative for the calendar year. The BSESENSEX has lost 1,074.12 points or 3.90% at the current level of 26,425.30 points. Similarly NIFTY is down 299.8 points or 3.62% at the current level of 7982.90 points. The markets have to establish a new low and make a base before they begin an uptrend. The reason I am saying this is not because I have become bearish but because markets need time to consolidate. They need to recover and recovery is always more time consuming than making new ground.
The week has all the makings of plenty of action which a trader needs. The rains are here in Mumbai and we have already had our share of water logging in central Mumbai in the little rain that has happened. As the monsoon progresses all over the country, there would be news to cheer the market as farmers feel the rain and effectively money being showered on them.
Let us hope and pray that our farmers really benefit from nature’s bounty because without that Dalal Street would be nowhere.
