Indian Markets settled higher for fifth consecutive week - Microsec

Indian markets settled higher for the fifth consecutive week fuelled by easing inflation, strong global markets, FII liquidity and anticipation of rate cut by RBI. The markets hit fresh 30 month high with Nifty touching 6,200 level and Sensex breaching 20,200 levels during the week.

On domestic front, India's WPI Inflation slowed for the third straight month in April 2013 to 4.89% YoY, near to a 3.5 year low, against 5.96% YoY in the previous month. Though the lower base effect supported the headline print, slowdown in price level was also witnessed across all broad categories. Reflecting the decline in commodity prices, Core Inflation dropped for the eighth straight month to 2.7% YoY.

When the Government of India is looking forward to an upgrade, Standard & Poor's (S&P) warned to downgrade the India's sovereign rating to 'junk' status if the Government failed to keep pace with the global rating agency's expectation on reforms and containment of the twin deficits. S&P not only reaffirmed India's sovereign rating at the lowest investment grade 'BBB-' with a 'negative' outlook but also warned of at least a one-in-three likelihood of a downgrade within the next 12 months.

On global front, The U.S. Retail Sales edged up 0.1% in April 2013 from a 0.5% decline in March.

The U.S. Industrial Production dropped 0.5% in April, 2013, after registering a revised 0.3% increase in March. China's Industrial Output rose 9.3% in April 2013 from of 8.9% in March 2013.

Source : Equity Bulls

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