US Markets tumbled thanks to dismal regional manufacturing data and after US jobless claims jumped to a nine month high. Indian markets might receive a jolt in the form of overseas cues when they open for trading on Friday morning.
Overseas markets
Taking a cue from US markets, Asia tumbled in the early morning trades. Japan's Nikkei fell 1.4% to 9,232.6 while Australian market was down by 1.14 pct at 4,428.10DStreet US based analyst Satish Bhogadi commenting on yesterday's trade in the US markets said "US economy is deteriorating gradually. We stick to our ealier S&P SELL target of 950. We see more pain in the second quarter as US Manufacturing slowdown will continue."
In another intersting M&A (Merger & Acquisition) deal world's largest computer chip maker Intel paid $48 per share to acquire antivirus company McAfee.The deal is valued at $7.68 billion.
Inflation worries ease
Food inflation eased to to 10.35 pct from 11.4 pct much to the relief of regulators. RBI went on a rate hiking spree to curb inflation. The reserve bank also hinted of another hike in September. Inflation is expected to further ease in the coming days.
“We may raise inflation forecast for India in our next Economic Outlook slated for September 28. It may depend on how Monsoon plays out,” said cheif economist of Asian Development Bank (ADB) Jong-Wha Lee.
Markets gung-ho
Indian markets are gung-ho on upbeat economic outlook. But troubles in the form of global economic situation, another round of rate hike from RBI await. We will see a gap down open today on the back of global cues but the intrinsic strength in the market is still bullish and it is highly unlikely we might end deep in the red.
Sector rotation continues it was Cement, Airlines and midcap pharma that shined on the street. Watch out for untouched sectors like Power, Infra, Paper, Metals, Telecom, Engineering and Sugar.