US Markets extended their nightmarish run after pending Home sales dropped a record 27.2% in July.
Global news
Japanese currency Yen hit a 15-month high against the Greenback (USD) on investors shunning equities and commodities. Japanese central bank might intervene soon. In another interesting development which might ignite memories of recent Euro crisis, S&P downgraded Ireland's rating to 'AA-'. Global economy along with the equity markets face tough times ahead
How long will India be resilient ?
Indian economy fortunately was driven by local factors along with FII inflows. While India has been the hottest destination for FIIs in the last 18 months, domestic consumption story might keep Indian market alive. But there are many ifs and buts attached to the market upmove. If global markets continue to slide and India stays on the sidelines there is a fear that citing cheaper valuations else where FIIs might exit Indian markets in favour of better returns.
With F&O expiry slated for tomorrow we do not expect a massive downside to the market. Having said that we are confident of a quick but major correction unwinding sometime next month.