Stock Market eyes light at end of dark tunnel

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The voices from the board of US Federal have poured cold waters on the hopes of the rate cuts at the earliest.

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By S Jha

New Delhi, January 18: After losing over 700 points in two days, Nifty staged a recover of almost 300 points from the day’s low on Thursday. The HDFC Bank-led equity rout on the Dalal Street unleashed the bloodbath in the frontline stocks.

But the storm appears to have temporarily blown away, at least as it appears from the US-based bourses turning green in the afternoon session of the trade on Thursday. While the Indian bourses felt the brunt of the unprecedented hammering of the HDFC Bank, the US equity markets were jolted in the wake of the anticipated rate cuts not happening.

The voices from the board of US Federal have poured cold waters on the hopes of the rate cuts at the earliest. The Reserve Bank of India Governor Shaktikant Das has also cautioned against the impatience for the rate cuts soon. The markets globally appear to have now factored in the reality that the rate cuts may not be happening at the earliest.

The sharp uptick in the bond yield and the strengthening of dollar seemingly made the foreign institutional investors to dump equities in Asia to take the hot money back home. The rising fear of the Middle East tension also getting out of hand is sinking sentiments of the investors.

Yet, the market participants have begun claiming that the market may have been oversold and that too in a quick time. A relief rally may be on the card per market participants who are drawing confidence from over per cent gain on NASDAQ. Largecap IT firms held their grounds on Thursday.

Oracle Financial Services soared 28 per cent after reporting good set of numbers in the quarterly results. Persistent Systems gained strength on the back of the news that the board of the company will meet on Saturday to take a decision of the split of the share. The current face value is Rs 10. Tech Mahindra was higher by two per cent. LT Mindtree tanked over 10 per cent after reporting numbers which were just in line with the expectations of the market.

(Disclaimer: This article doesn’t recommend buy or sell of any shares; one must consult SEBI-registered advisors before making any investment decision)

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