Indian Stock Markets likely to gain volatility - Microsec

Indian stock market is likely to gain volatility, earlier precipitated by political news flows, now by escalating tensions between North Korea and South Korea -US combine. The rhetoric between the leaders of these countries will be highly watched and investors around the region are likely to react sharply in the eventuality of a war like situation. However, we strongly believe that escalating tensions in the region may further aid capital flows in countries like India as foreign investors pull out of countries around that region.

On the economic front, the current account deficit which has zoomed to $32.63 billion in the quarter ending Dec. 2012 would be a wakeup call for the Indian government that may announced policies to further curb imports especially that of capital goods and take measures to boost exports. The INR may gyrate sharply, but may not remain weak against the US dollar as the impact of the rising current account deficit has already been captured in the value of the INR to a large extend over the months.

Buy Dabur, Pidilite, Tube Investments for investments. Automobile numbers for the month of March 2013 may impact stock specific movements in auto shares.

Source : Equity Bulls

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