A day of huge volatility in Indian markets and US markets.We made a low of 5270 and bounced back in the second half.In US the markets went from positive territory to negative when Italy's PM won the budget vote.The results show that the PM is losing his majority.Out of the 630 seat parliament, 308 voted in favor and 321 did not vote and there were no votes against the budget.The markets rallied again when the President of Italy announced that the PM will resign once the austerity measures are taken.
The most awaited IAEA report was out yesterday and it confirms that Iran is trying to build a nuclear weapon since 2003 but lying about the same to the International community.The experiments were carried out in a secret , protective chamber built for the testing purpose 30 kilometers from Tehran.It sent lot of shock waves among those in Israel.The Israel's PM's office said that they are studying the report and will issue a statement later.From the markets point of view, it is a very important news which needs to be watched meticulously.
As I have mentioned in a previous article, any attack on Iran will send the crude prices higher.
The Chinese CPI is announced today and as expected it is at 5.5% compared to the same period a year ago.(Read my yesterday's article).
In the domestic front SBI is set to announce the results.SBI rallied yesterday anticipating a good result.
The retail traders in our markets to whom I spoke with is of the view that ,why our markets need to worry for the European crisis.It should affect only the companies which have business interest in the Eurozone nations.The answer to their question lies in the report on India's trade deficit.India's trade deficit widens in the month of October.Main reason being the weakening of Indian Rupee, decline in exports and the import of Coal and Crude at a time when the foreign fund flows are in a decline.Commerce secretary Rahul Khullar says,it is something to be worried about and at this rate we will clearly breach the $ 150 Billion mark.This is attributed to the global turmoil (Read,Eurozone crisis) because of which the fund flows are getting dried up.
Keep an eye on the International Crude prices as the IAEA report may be seriously taken by Israel and the USA.
Our markets may open positive tracking the global cues and the Asian Markets.Stay cautious in the second part of the day as, we have a trading holiday tomorrow.
FTSE futures is trading up by 55 points at 07.45 AM IST.
Dow futures is trading down by 10 points at 07.45 AM IST.
