Markets are tumbling and struggling to maintain their position above 13,500. Today market have reached below 13,500 i.e reached 13,400. Short after Sensex reaching14,000 mark, market skidded down to 12,800 more than 1000 points below in the same week , but soon recovered back.
The contributors for this fall is from all angles, Auto, Bank, Metals ( Both Ferrous and Non-Ferrous ), Infrastructure etc. But the major strike came from the announcement of CRR and IIP weakness data which added up to the decline of the market.
Some Experts expects for a market fall below 12,500 level, but if that is going to be the case, then the nightmare of April will be back in this Christmas and New Year, which will make the investors to bleed more.
But chances are less for reaching below 12,500. Market will sure sustain the mark above 13,000.
One good news which soothes the market fall is, India’s GDP reached the expected level of 9.1%, but on the other side, the inflation is raising and reached 5.1% , but below the RBI’s mark i.e 5.0% to 5.5%.
But, raising GDP might overheat the market and might heatup the inflation too. RBI had ordered banks to increase the reserves in bank, which obviously means that distribution of loans will be reduced.