Markets may continue to slide on global cues

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June 4, 2012

NEW DELHI: Stock markets may continue the downslide in near-term amid declining global trend led by euro-zone crisis, say analysts.

Analysts feel domestic GDP data which came at less than expected level has made sentiments jittery and all eyes will now be on the forthcoming monetary policy on June 18.

June 4, 2012

NEW DELHI: Stock markets may continue the downslide in near-term amid declining global trend led by euro-zone crisis, say analysts.

Analysts feel domestic GDP data which came at less than expected level has made sentiments jittery and all eyes will now be on the forthcoming monetary policy on June 18.

News flow from the euro-zone region will dictate the short-term trend on the domestic bourses, they added.

"More downside cannot be ruled out. All eyes will be now on RBI monetary policy on June 18. Global developments will continue to influence the market sentiments," Bonanza Portfolio Research Analyst Shanu Goel said.

US stocks dropped more than two per cent on Friday, with the Dow turning negative for the year for the first time, after poor labor market figures showing a meager 69,000 jobs were added in May.

That combined with dismal data on industry from the US, Europe, China and elsewhere to produce a picture of a sharply slowing global economy.

The Dow Jones Industrial Average closed down 274.88 points (2.22 percent) at 12,118.57.

Traders expect more volatility in June, with key events scheduled, such as IIP data, inflation number for May and RBI policy.

Apart from the domestic situation, Greece's elections on June 17 will be watched very closely, experts said.

"For the current month we are expecting the market to remain volatile ahead of major outcome such as Greece Election and RBI meeting," said Shrikant Chouhan, Head of Technical Research, Kotak Securities.


Courtesy: ET

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