last week was a smaller one with just four trading session but the week ended with a bloodbath as markets lost 4 per cent in just a single day. Now going forward investors sit in nervousness as to what will happen as August expiry approaches.
The Pioneer talked to market experts in order to identify market trend during this week. Expressing concern about the markets, First Step Capital’s Krunal Dayma said, “We are expecting rupee to depreciate further and might even touch 64 per dollar levels. Government needs to take some strong steps as till now what ever measure they took were temporary in nature. They need to take some concrete steps now. As far as stock markets are concerned we expect the weakness to continue.”
With the Government now pushing for foreign direct investments (FDI), Krunal feels it won’t have a major impact. “FDI is long term process and we do not see it will have any major impact on the short term. We feel FDI will only come into the country post 2014 general elections.” Jagdish Thakkar from Fortune Fiscal said, “Markets have corrected a lot after a panic selling by investors of foreign funds and now we expect a small pullback might come in a few days. Now all eyes are fixed on what kind of measures Government announces. Also, we expect the weakness in rupee to continue. So it is imperative for Government to take some strict action.”
Globe Capital’s Ravi Rastogi expects that certain stocks now look attractive from a view of long term investment. He said, “There was lack of confidence among investors and FIIs which caused the heavy sell off during Friday’s trade. But now we expect value buying to pick up again. We expect the markets to recover a little form the current levels in the coming week. Focus would be on madcap companies as they might outperform the heavyweights in the coming days. As far as currency goes, we are expecting the rupee to depreciate further more.”
Ashok Agarwal from Escrorts Securities has a similar view. “Markets might fall a little but the panice selling is more or less over. From here, buying will gain be seen from the lower levels though investors should avoid short term trading. We are expecting the currency to fall further and this might have an adverse impact on the market sentiments,” he added.
Kunal Saraogi of Equity Trendz added, “Markets do look week and may fall a little more but we are not expecting any major slide. Rather we expect the markets to give a pullback once the correction is over. Rupee has hampered the market sentiment and we expect it to continue depreciating. But in the coming days we do feel value buying will again start as most of the stocks have corrected heavily.”