Yesterday's disapppointment in the currency market seems to have caused a global ripple as after the piping down of reform noises in the Indian polity, nothing else from India seems to have been newsworthy except the sudden slide in the rupee which was worth 1.1% of the 1.35% move on Monday morning by the time markets ended.

The diagnosis  - Global ripples are mostly post facto and the Rupee may well be able to continue correcting as the Indian stock markets hold with Sensex at 16890 and 5100 respectively. If the nifty does fall below 5100 as SGX Nifty presupposed in the aftermath yesterday then there would be a lot of unlikely churn as most (including us) are bought to 5100/17000 levels and as the netorks  mentioned this would be the first quarterly loss on the Sensex since December. 

Trading volumes ere at their highest yesterday in the Indian Markets. If an when the climb back starts thru 5050, 5090 and the strongest levels at 5100 the banks that corrected from 10150 to 9800 on the bank nifty may well catch back with ICICI Bank getting weaker for moves in SBI and HDFC Bank instead

Posted via email from The India Investment Post