Indian equities are going through a rough phase with negative news flow hitting the street, resulting in a big underperformance when compared to global peers. Wall Street finished in green yesterday with gains of above one percent.
Asian markets are trading marginally in the green today.
Negative news flow
It all started with weak IIP Data, followed by 2G-Scam, Korean tensions and the latest being housing loan scam. Government yesterday announced this is a case of bribery and has nothing to do with the system. The quantum of scam is reported to be nearly Rs 2,000 Crore.
Which started as a correction is likely to extend as a slide. The housing loan scam is no big deal in countries like India and is well known to the investing community. But the timing of the news is a concern. We are witnessing a massive sell-off almost every day by the FIIs.
While for today Nifty might inch towards 5900 levels, where the second Max pain is located. Overall it is advisable for investors to start cherry picking at a very slow pace and continue the job on all further downsides