Markets take global cues, close near two-month low
Analysts stated that it was a bad day for global equities and investors needed a reason to correct. “I am a little less worried about the US Fed minutes. The US markets came off five-year highs and there is nothing bad about a healthy correction. The same is true for the Indian markets. We have had a great run from September to January and we do not foresee any change in fundamentals. We do not hear any alarm bells are not ringing as of now,” said Andrew Holland, CEO, Ambit Investment Advisory.
According to a research head and market strategist of a US-based financial services group, Thursday’s fall in Indian equities had no domestic context.
“It was an overnight risk off and bad economic data. In such a scenario, it is going to be hard for central banks in the US and EU to pull out liquidity support. The dollar would strengthen and worsen the situation in global equities. It is not an easy decision to pull out monetary easing,” he said on condition of anonymity.
Market watchers said the sharp correction ahead of the Union Budget would leave some room for upside. Historically, markets have corrected after the budget and the chances of positive surprises are more, they explained.
Shares of metals, banking, and real estate companies were among the worst hit, while all main sectors finished in negative territory. Market breadth was weak, too, with nearly
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