Indian Markets Recover after facing major decline in October

Indian stock markets recovered smartly during the last two trading sessions of October. The massive intraday movements of benchmark indices led to panic for traders and investors. Indian markets were mimicking the trend in the global markets but Indian market is additionally troubled by liquidity issues. SBI Chairman said that the issues caused by IL&FS to financial sector would return to normal situations within two weeks.

Indian companies have so far reported strong quarterly results. Markets have witnessed stock specific action with companies declaring strong results witnessing sharp pullback in stock valuations.

The U.S. stock markets have also witnessed strong upside movement in the last three trading sessions. Market analysts had started talking about risk of correction in the market last week as major indices witnessed losses. The trade war issue is still on mind of investors and if the U.S. government moves ahead with its tariff plans for rest of the Chinese goods, it could lead to troubles for Chinese economy in near future.

China is interested in leading talks with the U.S. government but the Chinese authorities have indicated that the Asian powerhouse won’t come under pressure. President Donald Trump has blamed China for unfair trade practices and technology stealing over last few months. Chinese authorities have downplayed the risks to Chinese economy but the Chinese currency has witnessed a decline due to issues related to tariffs and trade war with the United States.

Indian markets are expected to follow the global markets in near future. Traders will be cautious and long term investors could also think about selling some of their holding at higher levels.




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