Markets responding to Q3 result cues

Strong selling pressures dragged the Sensex below the 9,000 level this week. The benchmark index shed 649 points and plunged 7 per cent in a weeks time and closed at 8674.4 points last Friday. The effects were clearly visible in the sectoral indexes as all the sectors ended in the red last week. Realty and Metal were heavily battered,declining 12.2 per cent and 11.4 per cent respectively.

Inflation reversed its downward trend of the last several weeks and rose from 5.24 per cent to 5.60 per cent for the week ended January 10. The hardening of food prices due to the recent truckers strike brought about this increase. The yellow metal is currently trading at Rs 13,800 per 10 gram and gained 6.4 per cent during the week. The price of crude oil jumped almost 3 per cent during this period and is currently trading at 43.4 per barrel.

According to Ashoka Ajmera,chairman and managing director of Ajcon Global Services,last week the market was mostly driven by Q3 results of various companies. Says Ajmera: Q3 results were a mixed bag: the net profits of Reliance Industries and Ranbaxy Laboratories declined while that of Bharti Airtel rose. The global cues are still very weak. Unless there is a turnaround,the markets will continue to remain under great pressure.

According to Ajmera,investors should be company specific while investing in the current market,instead of being sector specific. He further adds that you should invest with your own money and not through leverage,and within 12-18 months your investments should show appreciation.