Spooked by tightening US presidential race and US investigation into price collusion by Indian generic drug companies; registering second highest weekly fall in one year, markets dropped to four month lows during the week ended.
Benchmark indices, the Sensex and the Nifty ended 656 points and 195 points lower at 27274 and 8431.
Heightened volatility triggered sharp selling in midcap and smallcap stocks. Both BSE Midcap and Smallcap indices registered over 4 per cent weekly fall.
The GST Council announced multi tier tax regime but failed to reach consensus on sharing of administrative powers. Marketmen fear that more “dirt” from Tata-Mistry episode will impact Tata counters.
Global markets have priced in Hillary Clinton’s victory. Ahead of the election S&P 500 dropped for nine straight days marking the longest losing streak for the index since December 1980.
For the week ahead, chartists predict trading range of 26700-27750 and 8275-8590 for the benchmark indices. Support for the indices evident at 27000 & 26725 and 8350 & 8275.
Near term trend will be dictated by global cues like US elections and volatility in US Dollar Index; and domestic cues like macroeconomic data like IIP numbers, Q2 results, geopolitical developments, FII inflows/outflows and rupee movement against dollar.
