Key Indian indices dropped for third day in a row - Standard Chartered Securities

Key benchmark indices dropped for the third day in a row on rising expectations that the US Federal Reserve will soon start withdrawing its monetary stimulus to the US economy. But, the market trimmed losses after an initial sharp slide. Stocks fell across emerging markets as investors prepare for a winding down of the Federal Reserve's easy money policies. The Indian Rupee (INR) hit record low against the US dollar (USD) and many other Asian currencies fell on concern capital outflows will accelerate.

Auto stocks dropped. Vedanta group metal stocks rallied on reports that the legal hurdle has been cleared for government's stake sale in Hindustan Zinc and BALCO. Other metal stocks also gained. IT stocks declined on profit booking after recent gains. Many capital goods stocks fell on worries the ongoing slowdown in the economy could restrict new orders. Realty stocks were in demand. Bank stocks trimmed intraday losses.

Markets expected to open higher after the Reserve Bank of India (RBI) last evening issued another set of steps, aimed at twin purposes; arresting dip in long term bond yields and shielding banks from incurring financial losses due to declining bond prices.

Source : Equity Bulls

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