InvestorQ : What is your view on the market for 09th June 2022? Will the markets go down further from here on?
Arusha Ray made post

What is your view on the market for 09th June 2022? Will the markets go down further from here on?

Answer
image
diksha shah answered.
4 weeks ago
Follow

The RBI monetary policy announced on 08th June, raised the repo rates by another 50 bps but maintained status quo on the CRR. This led the markets to become highly volatile on Wednesday and the Nifty eventually closed with losses of 60 points. Financials came under pressure as did consumer goods amidst fears of weak demand.

In terms of the market structure, breadth of the Nifty was negative with the advance decline ratio at 22:28 for the Nifty. The only gainers in the day were the pure oil refiners like MRPL and CPCL which gained from the spike in Singapore GRMs. Consumer goods came under a lot of pressure on fears of the demand slowing down.

Foreign investors were net sellers in equities worth Rs.2,484 crore while domestic funds bought stocks worth Rs.1,904 crore on Wednesday. In terms of global markets, the Dow and the NASDAQ reacted negatively to higher crude prices and uncertainty ahead of Fed meet. SGX Nifty is 77 bps lower on crude surge and INR weakening beyond the 78 levels.

For now, the risks to the market are numerous. Firstly, rate hikes could open up solvency risks for leveraged companies. Also, crude has gone above $123/bbl while the Indian rupee has weakened beyond Rs78/$. This is hardly the time for value buying or bottom fishing. The best thing to do at this point is to be cautious in the markets.

13 Views