Memories of 2008 have returned to haunt the market as the sharp crash in the indices on Thursday sent Indian indices into bear territory. The hug has got tighter especially this week as global sell-off accentuated sending stocks in a tizzy. The silver lining is that after the bear market phases of January 2008 to March 2009 and November 2010 and January 2012, the indices have zoomed with a vengeance gaining over 100% in a year. For now we have to contend with multiple headwinds and hope that the budget doesn’t have any negative surprise.
The outlook is a weak start again. On the macro front, IIP, CPI and Export-Import data are on tap. Among the results scheduled today are Mahindra & Mahindra, BPCL, HPCL, NMDC, Indian Oil Corporation, Nestle India, Canara Bank, Ceat, Corporation Bank, Sun Pharma, Godrej Industries, Dhanlaxmi Bank, Adani Power, Suven Life Sciences and Andhra Bank. For the last couple of weeks, Fridays have shown encouraging signs of revival in battered markets. Global rout, shocking slippages by PSU banks and the margin calls triggered thereafter can continue to cause havoc though. Globally, investors seem to have lost faith in the ability of their Central Banks to revive economic growth. While ECB and Japan persist with their easing policy, US Fed seems confused whether to hike rates or not. Investors with at least 15-24 months horizon should be on an active stock lookout as valuations are getting attractive."
US stock indices declined for a fifth successive session on Thursday, dragged lower by the ongoing global turmoil in the financial markets and lingering worries over falling oil prices.
With a view to addressing the expected tightening of liquidity conditions in March on account of advance tax payments by corporate and in order to provide flexibility to the banking system in its liquidity management towards March-end 2016, the Reserve Bank of India will inject adequate additional liquidity using a combination of appropriate instruments, while continuing with its normal Liquidity Adjustment Facility (LAF) operations.
RBI Governor Raghuram Rajan stated that for deep surgery like loan recast, banks must recognise the problem.
Putting stressed projects on track may need deep surgery, he said adding that Govt will support state-run banks with capital infusion as needed.
GoAir is planning to hire Goldman, Kotak Bank and BOFA-ML to manage its $150mn IPO, according to reports.
Trent Ltd. on Thursday said that online retailer Amazon.com Inc has bought a 26% stake in its publishing unit Westland for about INR 9.5 crore.
Gold futures rose by more than US$50 an ounce to settle at the highest level in about a year on Thursday, as global investors turned to safe haven assets amid sharp losses in equity markets.
