Today sensex figures again disheartened investors. It ended down 0.76 percent or 137.05 points at 17,995.19, with 20 components losing. The key reason of today’s sensex downtrend is because of the central bank raising rates by an expected quarter percentage point in an effort to check high inflation. A weak world stock market further dampened the sentiment.
The Reserve Bank of India has announced hiking of lending rates by 25 basis points for the tenth time since March 2010. A debt crisis in Europe, inflation in China, and other weakening world stock market performance did affect the India market as well. A BSE data shows that a net Rs 3.73 billion of stocks were sold by foreign investors triggering the further three-week low. Today sensex going down is thus no big jolt as the downtrend has been witnessed for quite some time.
Yes, if the world stock market improves, the Indian market will improve to some extent and the sensex and nifty will show signs of little uptrend if not the stretching low trend witnessed for weeks.
Well today sensex at 17,995.19 is not the three-week low but a three-month low. It is better to wait and watch and invest cautiously accordingly.