Indian Markets fall sharply led by global sell-off

Views of Mr. Dinesh Thakkar (CMD - Angel Broking) on Today's Market Movement

"The sharp fall today was led by a global sell-off triggered by concerns over the slowdown in the Chinese economy and fears of a currency war led by the Yuan devaluation. The fall in the benchmark indices was accentuated further by panic selling and margin calls. We expect markets to remain volatile in the coming few trading sessions led by negative global cues and the upcoming F&O expiry. However, the fundamentals of the Indian economy remain intact and the sell-off can be attributed to global factors.

However, the US economic growth continues to remain strong which should help stabilize global markets in the coming days.

As the panic settles down, we believe the markets would offer strong buying opportunities for long term investors to enter at attractive valuations. Once the selling from FII's abate, investors could look towards export drive sectors such as IT/Pharma and quality names across private banks, auto and infrastructure."

Source : Equity Bulls

Keywords