Indian Markets volatile because of sharp decline of INR - Microsec

The Indian markets have been volatile mostly because of sharp decline in INR coupled with domestic and global cues.

On domestic front, India's Inflation slowed to 42-month low in May 2013 to 4.70 percent YoY against 4.89 percent YoY in the previous month.

India's Industrial Production grew by 2.3 percent YoY during April 2013 vis-a-vis a revised 3.4 percent YoY growth registered in March 2013 (revised upwards from 2.5 percent YoY).

According to India Meteorological Department's (IMD) June forecast update report, monsoon season rainfall for the country as a whole is likely to be 98 percent of the long period average (LPA) with a model error of ±4 percent. Rainfall for the month of July 2013 is likely to be 101 percent of its LPA and that for the month of August is likely to be 96 percent of LPA both with a model error of ± 9 percent. Up to June 13, 2013, cumulative seasonal rainfall for the country as a whole is 28 percent above LPA.

On global front, The International Monetary Fund (IMF) sees the U.S. Federal Reserve maintaining large monthly bond purchases until at least the end of this year and urged the Central Bank to carefully manage its exit plan to avoid disrupting financial markets.

The U.S. Initial Jobless Claims fell by 12,000 to 334,000 in the week ended June 8, 2013 from its previous week.

The U.S. Industrial Production held flat in May, 2013 from its previous month. Industrial Output was unchanged on a seasonally adjusted basis in May, following a revised 0.4 percent decrease in April.

Source : Equity Bulls

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