Correction ahead of monsoon

Even as the stock market is eagerly awaiting monsoon, correction seems to have set in. The market has started factoring in the slow progress...

Even as the stock market is eagerly awaiting monsoon, correction seems to have set in. The market has started factoring in the slow progress of the monsoon.

Profit-taking ruled the roost on the bourses in the latter part of last week after a sharp surge in prices. ‘‘There was a lack of buying interest amidst reports that the progress of the southwest monsoon is slow,’’ said a NSE dealer.

Marketmen are keeping a close watch on the progress of the monsoon. ‘‘A poor monsoon will hit the economy hard. It will bring down rural purchasing power and the farm sector will be severely affected,’’ said BSE dealer Pawan Dharnidharka.

Story continues below this ad

The Centre for Mathematical Modeling and Computer Simulation has already forecast that India’s monsoon in June will be 34 per cent below normal. It has maintained its earlier forecast for rains in July, a crucial month for sowing of winter crops, at 12 per cent below normal.

However, fund managers are betting on strong near term liquidity due to huge cash inflows of about $1 billion from the Infosys sponsored ADR issue which got over recently. Some of this money is expected to flow to the secondary market. Last week, profit-booking took centrestage, pulling Sensex off a 3-month peak.

Analysts said the selling witnessed in the latter part of the last week is likely to continue in the coming days as operators feel that stock prices have already hit high levels.

‘Double bonanza for poor, middle class’: PM’s swadeshi pitch ahead of new GST roll out

India6 hr ago

PM Modi announced the rollout of new GST rates, calling it a "GST bachat utsav" and promising cheaper prices for medicines, insurance, and daily essentials. He emphasized that these reforms would ease doing business, attract investment, and benefit the poor, middle class, MSMEs, farmers, women, traders, and youth. He urged citizens to promote swadeshi goods.

View all shorts

Live Blog