Volatility To Persist

The markets have seen some good trading sessions that have helped it close this fortnight on a positive note. All the broader indices have closed in the green, and most of the sectoral indices were positive.

In the last fortnight, we have seen some events that have impacted the markets to some extent. The first one is obviously the rupee, which hit anall-time low of 56.40 per US dollar. The second was the steepest-ever petrol price hike to the tune of Rs 7.50 per litre. The last one was the results of State Bank of India (SBI). The latter two events have indeed played an important role in helping the market post gains on the board. SBI’s quarterly numbers have given the much needed thrust that the market has been looking forward to from the corporate results.

The BSE Bankex is the topper for the fortnight, with a gain of 3.91 per cent. Other indices like Oil & Gas and IT were also among the gainers. Auto and Consumer Durables were underperformers. On the global front, most of the markets ended on a negative note, as solutions to the Euro zone crisis are still looking hazy.

Going forward, we believe that the markets are likely to trade on a volatile note.