Testing times; Rajan checks in - IIFL

Testing times continue in the market even as rising tensions in Syria and a threat of a sovereign downgrade sent 170 stocks to their 52-week lows. The rupee went into a tailspin and breached the 68-mark to the dollar with the main indices shedding ~3.5%. SEBI, said circuit breakers for benchmark indices, such as the BSE Sensex and CNX Nifty will henceforth be calculated on a daily basis.

Raghuram Rajan will take over as RBI Governor today. The coming days could see some popular moves. Reports suggest the central bank may roll back the controls imposed on overseas investments by companies - a move that had invited widespread criticism from industry. C. Rangarajan has reportedly said that Adjustment in rupee, which has fallen by 20% since May, was called for as the country has seen high inflation compared with other countries.

The outlook is a flat to weak start. Sentiment could remain weak as President Barack Obama has clinched the backing of two key figures in Congress in his drive for limited US strikes on Syria.

Source : Equity Bulls

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