After a comparatively better financial year end , the Indian stock markets seems to lost its momentum. Weakness persisted in the market pulled down some key benchmark indices. At the same time some other Asian nations with similar economic background could manage a better survival.
In the first week of the month itself, the market recorded almost a 2 percent loss. Experts observes that less than expected interest rate cuts from the Reserve bank side and the uncertainty in agricultural growth because of variations in monsoon may also be the reason for the loses. The drop in Global Growth rate and the possible rate hike from US Federation side are also behind the misfortune.
The experts from the share markets and consultants predicts that the market will stuck in the ranges for little more time. During January and February markets were in a downward tendency and the trend reversed during March because FII (Foreign Institutional Investors) invested almost INR 24000 crores in Indian equities. FII sold some major considerable shares of their stocks during this week and hence resulted in the present situation.However this is not going to be longer phenomenon.
Corrections in the root level are required to overcome the current situation. If Nifty reaches the 7,580 level , then further corrections will not be easier.