IDBI AMC Weekly Report (29th Aug, 2010)
A fresh round of dismal US macroeconomic data rekindled fears of a double-dip recession in the world's largest economy. In the US economic statistics released on Friday, the US government lowered its estimate of economic growth in the second quarter to an annual rate of 1.6 per cent, after originally reporting last month that growth in the three-month period was 2.4 per cent. Fears of a slower global recovery got re-ignited this week. Standard and Poor’s downgraded Ireland’s long term credit rating from AA to AA- and existing and new home sales in the US fell sharply, sending world markets into tumbling.
Source: Bloomberg
Reacting to the gloomy global scenario, the Indian markets also fell sharply this week with both the BSE benchmark Sensex and NSE benchmark Nifty shedding 2.2 per cent with Nifty closing at 5,408.70.
Source: Bloomberg
Real estate sector bore the brunt of the selloff after the recent spurt. Metal stocks also came under pressure despite an uptick in LME prices. Profit booking was also seen in Banking and Auto stocks.
Source: Bloomberg
The Rollover in Nifty Futures has been almost in line with the previous month. The Nifty Futures rollover this time has been at 73.98% vs. 72.36% last time. The rollovers in the Bank Nifty Index have been on the lower side in the September series.
Source: Bloomberg
Upcoming events for the week:
India – Quarterly GDP, exports and imports data
US – quarterly Personal Spending Index
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