Indian Markets under selling pressure during the week - Microsec

The Indian markets was under selling pressure during the week on account of indication of Fed tapering of QE mostly which leads to a sharp decline in INR coupled with selling of FIIs.

On domestic front, India's seasonal rainfall activity was excess over country as a whole during the week ended June 19, 2013. Rainfall was 89 percent above Long Period Average (LPA). During the week northwest & central India received very high rainfall (400 percent & 172 percent above the respective LPA). However, east & northeast India received below normal rainfall (61 percent below LPA) during the week. For the country as a whole, cumulative rainfall during this year's monsoon (June 1-19, 2013) has been 54 percent above the LPA.

India's Trade Deficit increased to a seven month high of USD20.14 billion in May 2013 from USD17.8 billion in April mainly due to a nearly 90 percent annual jump in gold and silver Imports. However, rise in gold Import growth was slower than an annual 138 percent surge in April. During May 2013 India's Exports fell 1.11 percent from a year earlier to USD24.51 billion, the first annual fall in five months. Imports, meanwhile, rose 6.99 percent in May to USD44.65 billion.

On global front, The U.S. Federal Reserve in its FOMC meeting expects to begin scaling back its massive economic stimulus (QE3) later this year and end the program by mid-2014 if the recovery continues apace - delivering its clearest outline of its plans for the multibillion-dollar effort so far. The Fed has been spending $85 billion a month to buy long-term bonds and boost the economy.

Source : Equity Bulls

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