For Quick Alerts
For Daily Alerts

    4 reasons to be cautious on Indian equities next week

    4 reasons to be cautious on Indian equities next week
    The Sensex and the Nifty hit a two-month low on Friday, as worries over the global economy weighed on sentiments. Poor response to the 2G auction and hence a possible rise in fiscal deficit, sticky inflation and poor IIP data affected sentiments adversely. Here are a few reasons to be cautious on equities next week.

    Parliament session begins on November 22 and with it doubts over the FDI bills

    Parliament's Winter Session is all set to begin on November 22 and it looks doubtful that the FDI related bills, including increasing the limit in FDI in insurance and introducing FDI in the pension sector is likely to be passed. Also, a notice with voting has been served for FDI in multi-brand retail, which if admitted, could prove an embarassment to the government, given that it does not have the numbers.

    Fiscal cliff in the US - a serious worry

    Markets across the globe have fallen, primarily because of the worries over the fiscal cliff in the US. Matters are unlikely to be resolved quickly and though US president Obama met Congressman on Friday, nothing concrete has come through.

    Indian equities are likely to track the fiscal problem in the US and take cues from them. Read more about the fiscal cliff

    Middle East tensions escalating

    The tensions and the fight between Israel and Hamas is escalating, adding to worries over global oil prices, which may rise. On Friday oil gained nearly one percent , as Israel began mobilizing soldiers and increased its air campaign on the Gaza strip. Increasing tension in the region is likely to weigh on stock prices.

    Greece bailout worries to have stranglehold over Europe and the world

    Last week, the International Monetary Fund and euro zone officials on failed to agree to a long-term plan to cut Greece's debt, preventing the release of immediate aid to the country. Should the delay continue, Greece would not have the money it so desperately needs, as the country has virtually run out of cash.


    This could cause markets across the globe to teeter once again.

    Read more about: sensex nifty
    Story first published: Saturday, November 17, 2012, 10:45 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more