For a second day, India had more sellers on its stock markets than buyers.
Fear that metal prices may drift lower and anxiety on earnings results due. Investors seemed wary even as the euro weakened.
On the international front, World Bank cautioned of a slower growth rate in China and East Asia. There is some anxiety on investors being impacted by China's local government finances, shadow banking, pollution etc. The political impact of Hong Kong does not seem to worry market investors so much yet... So growth worries nag...
The good news for India is that lower commodity prices are good for input costs. Oil prices falling will give a push to India's industry and smother overall prices down... the forex deficit will be healthier and if the Government ensures less government as it has promised, there should be a reduction of fiscal deficit too.
Yet international investors are hesitant... it seems to be just a technical correction... there is no reason for a trend reversal...
Fear that metal prices may drift lower and anxiety on earnings results due. Investors seemed wary even as the euro weakened.
On the international front, World Bank cautioned of a slower growth rate in China and East Asia. There is some anxiety on investors being impacted by China's local government finances, shadow banking, pollution etc. The political impact of Hong Kong does not seem to worry market investors so much yet... So growth worries nag...
The good news for India is that lower commodity prices are good for input costs. Oil prices falling will give a push to India's industry and smother overall prices down... the forex deficit will be healthier and if the Government ensures less government as it has promised, there should be a reduction of fiscal deficit too.
Yet international investors are hesitant... it seems to be just a technical correction... there is no reason for a trend reversal...
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