Market Report

Indian markets are down by 35% YTD and we fell below the 16000 mark in Sensex. The falling rupee is the main culprit for the fall.Rising input costs,higher interest rates , higher import costs(Read ,Crude) and Forex losses for the corporates added fuel to the fire.Higher import costs will be passed on to the consumers , which means higher inflation rates. The rupee is down by 14% YTD and it has breached the 52 mark for the first time since March 2009.Alex sir expects Rupee to touch 52.48 in the short term.Rupee is down by 14% and the markets are down by 35% YTD , which means huge losses for the FIIs.No wonder, they have taken out 2700 crores from the secondary markets in the last five trading sessions.Alex sir feels,in this holiday season, the falling rupee means less foreign trips by the Indians and in-turn the domestic tourism will see a boost and the beneficiary is Mahindra holidays and Resorts.


Yesterday,after the Europe Markets opened, the fall was steep.Moody's warned France for a possible downgrade, sending all the European indices down by more than 2%.And the Japanese asset management Company,Kokusai sells its holding of Spanish and Belgian Government bonds to reduce the risk arising out of EU crisis.Almost all the European and American indices were down by more than 2%. Fitch says the supercommittee failure means revision of outlook to negative in US.S&P says US ratings are unaffected by the failure of the supercommittee.



Events to watch for the day- Q3 GDP of US(Second print) to be released today.The expectation is a no change from the previous one(2.5%).

EU consumer confidence.

Monsoon session of the Parliament begins today in India.


I expect our markets to open flat,and the mood from the FII desk shows no optimism in the near term.That is the key point to note and the opposition parties are planning for an adjournment motion in the parliament on Black Money(BJP) ,price rise(CPI and expected to be supported by NDA) and Telengana (TRS and expected to be supported by BSP).

Keep an eye on the Rupee.

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