Markets remained firm during the week despite trade and geo-political tensions. The Nifty gained in all five trading sessions – the first time since November 2017 - and ended the week 150 points higher at 10,480.
Global markets gyrated to trade war concerns as China announced that it would be implementing new tariffs on American products in response to levies announced by U.S. President Donald Trump. However, investors later resorted to buying on news of possible trade negotiations between the world’s two biggest economies.
Markets attempted a recovery during the week with the Nifty managing to hold on to the 10,000 level. Sentiments across the globe bounced back following reports that the U.S. and China are trying to prevent an escalation of their trade dispute. Domestic sentiments also got a boost after the government announced lower-than-expected borrowing for the first half of the next fiscal year.
Global equities were jittery during the week due to fears of a trade war between the United States and China, which could impact industrial investments and output. President Donald Trump announced tariffs of $60 billion on Chinese imports and Beijing responded with plans for reciprocal tariffs.
Indian markets were on edge during the week on worries that U.S. President Donald Trump’s import tariffs may trigger a trade war among the world’s leading economies. Trump's trade rhetoric had heightened risk aversion among global investors, leading them to cut bond investments in emerging economies like India, widening the yield spread between India and U.S. government bonds.
The Indian stock market remained volatile during the week with the Nifty touching a high of 10,632 and a low of 10,462 to end with minor gains of 0.4 percent. The midcap and smallcap indexes underperformed the benchmark index. Sluggish tax collection estimates amid weak global cues dented risk appetite. The rupee ended at a three-month low of 65.17 against the dollar after U.S. Federal Reserve Chair Jerome Powell's first testimony.
A rally in benchmark indexes on Friday helped the Indian stock market clock modest gains for the week. The March derivative contract started on a positive note after a dismal February series due to a $1.8 billion fraud reported at Punjab National Bank (PNB). The Nifty gained 0.4 percent for the week to end at 10,491 while the mid- and small-cap indexes underperformed and fell 0.2 percent.
A volatile week saw the Nifty trading in a range between 10,450 and 10,600, and the Bank Nifty index being dragged down by the $1.77 billion Punjab National Bank fraud case. The rupee ended at 64.21 against the dollar, compared to 64.39 last week. FIIs were net sellers to the tune of 28.5 billion rupees ($44 million) while DIIs were net buyers to the tune of 23.7 billion rupees.
Traditional Hindu scriptures imagine the existence as a series of repeating cycles. Modern science and economics also find evidence of cyclicality in many phenomena. In analysing the problem of investing in Indian equities, we examine two major cycles.
Markets were back on a selling spree after central banks across the globe hinted at reducing stimulus. U.S. markets were gripped by fears that upbeat wage growth in the United States may prompt the Federal Reserve to hike rates more aggressively in 2018. The Bank of England also warned of a sooner-than-expected rate hike.
At one point in Faraz Haider’s “Nanu Ki Jaanu”, a group of men are sitting around a table and having a serious discussion, when one of them starts sobbing for no obvious reason. The absurd moment is one that fits with the general tone of the film, where things happen without any rationale and no one has a clue about what is going on.