Reuters - The BSE Sensex on Monday posted its worst monthly fall in more than two years, tracking weak global markets as anti-government protests in Egypt led to risk aversion, with inflation and rate rise fears further dampening sentiment.
Michael Johnston submits:The anti-government protests in the streets of Egypt have dominated the headlines for the last week, as hundreds of thousands of Egyptians have continued to push for the resignation of their long-standing president. While the protests have been generally peaceful to this point, the demonstrations have cast an uncertain future over the north African country.
Equitymaster submits: Indian stock markets had an extremely weak session today attributed to negative global cues. The BSE-Sensex closed below the psychological 18,000 barrier for the first time since the start of the new financial year 2011-12 (FY12). The markets opened in the red and selling pressure pushed the indices well below the dotted line.
While the generic overnight futures meltup is present this morning, it is nothing compared to what the epic surge in the EURJPY early in the overnight session suggested it would be, and in fact the levitation in US equities driven as usual by Yen carry trades (just what is the P/E or PEG on the USDJPY, or the EURUSD for that matter?) is far more muted than seen in recent days.
Equitymaster submits: All attempts to claw back into the positive territory during the closing hours were thwarted and consequently, the benchmark indices in the Indian stock market ended the first day of the week in the red. BSE-Sensex (ISXIF.PK) edged lower by around 140 points, also ending below 19k whereas NSE-Nifty closed around 50 points below its previous closing.
Equitymaster submits: After a reasonably strong start today, the Indian markets succumbed to investor anxiety about the upcoming earnings season. As the session progressed, heightened profit booking pressure on the heavyweights drew the indices closer to the dotted line. By the final hour, the selling activity pushed the BSE Sensex into the red. While the BSE Sensex closed lower by around 14 points, the NSE Nifty remained flattish (gains of around 5 points).